Document and Entity Information
Document and Entity Information - USD ($) shares in Millions, $ in Billions | 12 Months Ended | ||
Jan. 31, 2023 | Feb. 23, 2023 | Jul. 29, 2022 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jan. 31, 2023 | ||
Current Fiscal Year End Date | --01-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-35680 | ||
Entity Registrant Name | WORKDAY, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 20-2480422 | ||
Entity Address, Address Line One | 6110 Stoneridge Mall Road | ||
Entity Address, City or Town | Pleasanton | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 94588 | ||
City Area Code | 925 | ||
Local Phone Number | 951-9000 | ||
Title of 12(b) Security | Class A Common Stock, par value $0.001 | ||
Trading Symbol | WDAY | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 31 | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive proxy statement for its 2023 Annual Meeting of Stockholders (“Proxy Statement”), to be filed within 120 days of the registrant’s fiscal year ended January 31, 2023, are incorporated by reference into Part III of this Annual Report on Form 10-K where indicated. Except with respect to information specifically incorporated by reference in this Form 10-K, the Proxy Statement is not deemed to be filed as part of this Form 10-K. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001327811 | ||
Class A | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 204 | ||
Class B | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 55 |
Audit Information
Audit Information | 12 Months Ended |
Jan. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Firm ID | 42 |
Auditor Name | Ernst & Young LLP |
Auditor Location | San Francisco, California |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 31, 2023 | Jan. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 1,886,311 | $ 1,534,273 |
Marketable securities | 4,235,083 | 2,109,888 |
Trade and other receivables, net of allowance for credit losses of $8,509 and $10,790, respectively | 1,570,086 | 1,242,545 |
Deferred costs | 191,054 | 152,957 |
Prepaid expenses and other current assets | 225,690 | 174,402 |
Total current assets | 8,108,224 | 5,214,065 |
Property and equipment, net | 1,201,254 | 1,123,075 |
Operating lease right-of-use assets | 249,278 | 247,808 |
Deferred costs, noncurrent | 420,988 | 341,259 |
Acquisition-related intangible assets, net | 305,465 | 391,002 |
Goodwill | 2,840,044 | 2,840,044 |
Other assets | 360,985 | 341,252 |
Total assets | 13,486,238 | 10,498,505 |
Current liabilities: | ||
Accounts payable | 153,751 | 55,487 |
Accrued expenses and other current liabilities | 260,131 | 195,590 |
Accrued compensation | 563,548 | 402,885 |
Unearned revenue | 3,559,393 | 3,110,947 |
Operating lease liabilities | 91,343 | 80,503 |
Debt, current | 0 | 1,222,443 |
Total current liabilities | 4,628,166 | 5,067,855 |
Debt, noncurrent | 2,975,934 | 617,354 |
Unearned revenue, noncurrent | 74,540 | 71,533 |
Operating lease liabilities, noncurrent | 181,799 | 182,456 |
Other liabilities | 40,231 | 24,225 |
Total liabilities | 7,900,670 | 5,963,423 |
Commitments and contingencies (Note 13) | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value; 10 million shares authorized; no shares issued or outstanding as of January 31, 2023, and 2022 | 0 | 0 |
Additional paid-in capital | 8,828,639 | 7,284,174 |
Treasury stock, at cost; 1 million and 0.1 million shares as of January 31, 2023, and 2022, respectively | (185,047) | (12,467) |
Accumulated other comprehensive income (loss) | 53,051 | 7,709 |
Accumulated deficit | (3,111,334) | (2,744,585) |
Total stockholders’ equity | 5,585,568 | 4,535,082 |
Total liabilities and stockholders’ equity | 13,486,238 | 10,498,505 |
Class A | ||
Stockholders’ equity: | ||
Common stock, value | 204 | 196 |
Class B | ||
Stockholders’ equity: | ||
Common stock, value | $ 55 | $ 55 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jan. 31, 2023 | Jan. 31, 2022 |
Net of allowance for doubtful accounts | $ 8,509 | $ 10,790 |
Preferred stock, par value (dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Treasury stock, shares | 1,000,000 | 100,000 |
Class A | ||
Common stock, par value per share (dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 750,000,000 | 750,000,000 |
Common stock, shares issued | 204,000,000 | 196,000,000 |
Common stock, shares outstanding | 204,000,000 | 196,000,000 |
Class B | ||
Common stock, par value per share (dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 240,000,000 | 240,000,000 |
Common stock, shares issued | 55,000,000 | 55,000,000 |
Common stock, shares outstanding | 55,000,000 | 55,000,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | ||
Revenues: | ||||
Total revenues | $ 6,215,818 | $ 5,138,798 | $ 4,317,996 | |
Costs and expenses: | ||||
Product development | [1] | 2,270,660 | 1,879,220 | 1,721,222 |
Sales and marketing | [1] | 1,848,093 | 1,461,921 | 1,233,173 |
General and administrative | [1] | 604,087 | 486,012 | 414,068 |
Total costs and expenses | 6,438,018 | 5,255,248 | 4,566,595 | |
Operating income (loss) | (222,200) | (116,450) | (248,599) | |
Other income (expense), net | (37,750) | 132,632 | (26,535) | |
Income (loss) before provision for (benefit from) income taxes | (259,950) | 16,182 | (275,134) | |
Provision for (benefit from) income taxes | 106,799 | (13,191) | 7,297 | |
Net income (loss) | $ (366,749) | $ 29,373 | $ (282,431) | |
Net income (loss) per share, basic (in dollars per share) | $ (1.44) | $ 0.12 | $ (1.19) | |
Net income (loss) per share, diluted (in dollars per share) | $ (1.44) | $ 0.12 | $ (1.19) | |
Weighted-average shares used to compute net income (loss) per share, basic (in shares) | 254,819 | 247,249 | 237,019 | |
Weighted-average shares used to compute net income (loss) per share, diluted (in shares) | 254,819 | 254,032 | 237,019 | |
Subscription services | ||||
Revenues: | ||||
Total revenues | $ 5,567,206 | $ 4,546,313 | $ 3,788,452 | |
Costs and expenses: | ||||
Total costs and expenses | [1] | 1,011,447 | 795,854 | 611,912 |
Professional services | ||||
Revenues: | ||||
Total revenues | 648,612 | 592,485 | 529,544 | |
Costs and expenses: | ||||
Total costs and expenses | [1] | $ 703,731 | $ 632,241 | $ 586,220 |
[1]Costs and expenses include share-based compensation expenses as follows: Year Ended January 31, 2023 2022 2021 Costs of subscription services $ 106,119 $ 85,713 $ 63,253 Costs of professional services 110,216 113,443 101,869 Product development 618,973 543,135 505,376 Sales and marketing 249,248 215,692 202,819 General and administrative 210,066 154,422 131,537 Total share-based compensation expenses $ 1,294,622 $ 1,112,405 $ 1,004,854 |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Share-based compensation expense | $ 1,294,622 | $ 1,112,405 | $ 1,004,854 |
Costs of subscription services | |||
Share-based compensation expense | 106,119 | 85,713 | 63,253 |
Costs of professional services | |||
Share-based compensation expense | 110,216 | 113,443 | 101,869 |
Product development | |||
Share-based compensation expense | 618,973 | 543,135 | 505,376 |
Sales and marketing | |||
Share-based compensation expense | 249,248 | 215,692 | 202,819 |
General and administrative | |||
Share-based compensation expense | $ 210,066 | $ 154,422 | $ 131,537 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ (366,749) | $ 29,373 | $ (282,431) |
Other comprehensive income (loss), net of tax: | |||
Net change in foreign currency translation adjustment | (1,782) | (3,295) | 2,926 |
Net change in unrealized gains (losses) on available-for-sale debt securities | (10,967) | (6,279) | (1,437) |
Net change in unrealized gains (losses) on cash flow hedges | 58,091 | 72,253 | (79,951) |
Other comprehensive income (loss), net of tax | 45,342 | 62,679 | (78,462) |
Comprehensive income (loss) | $ (321,407) | $ 92,052 | $ (360,893) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common stock: | Additional paid-in capital: | Additional paid-in capital: Cumulative Effect, Period of Adoption, Adjustment | Treasury stock: | Accumulated other comprehensive income (loss): | Accumulated deficit: | Accumulated deficit: Cumulative Effect, Period of Adoption, Adjustment |
Balance, beginning of period (in shares) at Jan. 31, 2020 | 231,708 | |||||||
Balance, beginning of period at Jan. 31, 2020 | $ 231 | $ 5,090,187 | $ 0 | $ 0 | $ 23,492 | $ (2,627,359) | $ (200) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of common stock under employee equity plans, net of shares withheld for employee taxes (in shares) | 9,373 | |||||||
Issuance of common stock under employee equity plans, net of shares withheld for employee taxes | $ 9 | 148,664 | ||||||
Purchase of treasury stock from the exercise of convertible senior notes hedges (in shares) | (1,655) | |||||||
Settlement of convertible senior notes (in shares) | 1,654 | |||||||
Settlement of convertible senior notes | $ 2 | (4) | ||||||
Share-based compensation | 1,003,726 | |||||||
Exercise of convertible senior notes hedges | 303,238 | (303,239) | ||||||
Common stock repurchased (in shares) | 0 | |||||||
Common stock repurchases under share repurchase program | 0 | |||||||
Settlement of warrants (in shares) | 1,587 | |||||||
Settlement of warrants | (290,875) | 290,855 | ||||||
Other (in shares) | 0 | |||||||
Other comprehensive income (loss) | $ (78,462) | (78,462) | ||||||
Net income (loss) | (282,431) | (282,431) | ||||||
Balance, end of period (in shares) at Jan. 31, 2021 | 242,667 | |||||||
Balance, end of period at Jan. 31, 2021 | 3,277,834 | $ 242 | 6,254,936 | (219,702) | (12,384) | (54,970) | (2,909,990) | 136,032 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of common stock under employee equity plans, net of shares withheld for employee taxes (in shares) | 8,417 | |||||||
Issuance of common stock under employee equity plans, net of shares withheld for employee taxes | $ 9 | 148,319 | ||||||
Purchase of treasury stock from the exercise of convertible senior notes hedges (in shares) | 0 | |||||||
Settlement of convertible senior notes (in shares) | 0 | |||||||
Settlement of convertible senior notes | $ 0 | (3) | ||||||
Share-based compensation | 1,100,536 | |||||||
Exercise of convertible senior notes hedges | 88 | (83) | ||||||
Common stock repurchased (in shares) | 0 | |||||||
Common stock repurchases under share repurchase program | 0 | |||||||
Settlement of warrants (in shares) | 0 | |||||||
Settlement of warrants | 0 | 0 | ||||||
Other (in shares) | 125 | |||||||
Other comprehensive income (loss) | 62,679 | 62,679 | ||||||
Net income (loss) | 29,373 | 29,373 | ||||||
Balance, end of period (in shares) at Jan. 31, 2022 | 251,209 | |||||||
Balance, end of period at Jan. 31, 2022 | 4,535,082 | $ 251 | 7,284,174 | $ 0 | (12,467) | 7,709 | (2,744,585) | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of common stock under employee equity plans, net of shares withheld for employee taxes (in shares) | 7,156 | |||||||
Issuance of common stock under employee equity plans, net of shares withheld for employee taxes | $ 7 | 151,967 | ||||||
Purchase of treasury stock from the exercise of convertible senior notes hedges (in shares) | (635) | |||||||
Settlement of convertible senior notes (in shares) | 635 | |||||||
Settlement of convertible senior notes | $ 1 | (40) | ||||||
Share-based compensation | 1,294,622 | |||||||
Exercise of convertible senior notes hedges | 97,916 | (97,915) | ||||||
Common stock repurchased (in shares) | (450) | |||||||
Common stock repurchases under share repurchase program | $ (75,000) | (74,665) | ||||||
Settlement of warrants (in shares) | 0 | |||||||
Settlement of warrants | 0 | 0 | ||||||
Other (in shares) | 76 | |||||||
Other comprehensive income (loss) | 45,342 | 45,342 | ||||||
Net income (loss) | (366,749) | (366,749) | ||||||
Balance, end of period (in shares) at Jan. 31, 2023 | 257,991 | |||||||
Balance, end of period at Jan. 31, 2023 | $ 5,585,568 | $ 259 | $ 8,828,639 | $ (185,047) | $ 53,051 | $ (3,111,334) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Cash flows from operating activities: | |||
Net income (loss) | $ (366,749) | $ 29,373 | $ (282,431) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 364,357 | 343,723 | 293,657 |
Share-based compensation expenses | 1,294,622 | 1,100,584 | 1,004,854 |
Amortization of deferred costs | 174,611 | 138,797 | 112,647 |
Amortization and writeoff of debt discount and issuance costs | 6,955 | 3,988 | 53,693 |
Non-cash lease expense | 91,750 | 86,235 | 84,376 |
(Gains) losses on investments | 30,780 | (145,845) | (16,558) |
Other | 12,645 | (14,213) | 4,247 |
Changes in operating assets and liabilities, net of business combinations: | |||
Trade and other receivables, net | (318,600) | (207,933) | (159,240) |
Deferred costs | (292,437) | (238,453) | (184,353) |
Prepaid expenses and other assets | (14,070) | (35,153) | 52,117 |
Accounts payable | 85,773 | 9,414 | (3,476) |
Accrued expenses and other liabilities | 135,965 | 50,671 | (18,472) |
Unearned revenue | 451,593 | 529,516 | 327,380 |
Net cash provided by (used in) operating activities | 1,657,195 | 1,650,704 | 1,268,441 |
Cash flows from investing activities: | |||
Purchases of marketable securities | (7,182,961) | (2,858,729) | (2,731,885) |
Maturities of marketable securities | 4,948,833 | 2,804,103 | 1,802,334 |
Sales of marketable securities | 104,324 | 199,016 | 10,627 |
Owned real estate projects | (4,236) | (171,501) | (6,116) |
Capital expenditures, excluding owned real estate projects | (359,552) | (264,267) | (253,380) |
Business combinations, net of cash acquired | 0 | (1,190,199) | 0 |
Purchase of other intangible assets | (700) | (8,007) | (2,950) |
Purchases of non-marketable equity and other investments | (23,173) | (123,011) | (67,482) |
Sales and maturities of non-marketable equity and other investments | 11,539 | 5,169 | 7,228 |
Net cash provided by (used in) investing activities | (2,505,926) | (1,607,426) | (1,241,624) |
Cash flows from financing activities: | |||
Proceeds from issuance of debt, net of debt discount | 2,978,077 | 0 | 747,795 |
Repayments and extinguishment of debt | (1,843,605) | (37,614) | (268,762) |
Payments for debt issuance costs | (7,220) | 0 | 0 |
Repurchases of common stock | (74,666) | 0 | 0 |
Proceeds from issuance of common stock from employee equity plans, net of taxes paid for shares withheld | 151,974 | 148,328 | 148,673 |
Other | (739) | (463) | (2,657) |
Net cash provided by (used in) financing activities | 1,203,821 | 110,251 | 625,049 |
Effect of exchange rate changes | (595) | (705) | 1,334 |
Net increase (decrease) in cash, cash equivalents, and restricted cash | 354,495 | 152,824 | 653,200 |
Cash, cash equivalents, and restricted cash at the beginning of period | 1,540,745 | 1,387,921 | 734,721 |
Cash, cash equivalents, and restricted cash at the end of period | 1,895,240 | 1,540,745 | 1,387,921 |
Supplemental cash flow data | |||
Cash paid for interest | 59,510 | 13,310 | 14,373 |
Cash paid for income taxes, net of refunds | 88,569 | 12,563 | 9,939 |
Non-cash investing and financing activities: | |||
Purchases of property and equipment, accrued but not paid | 51,089 | 47,015 | 54,792 |
Cash and cash equivalents | 1,886,311 | 1,534,273 | 1,384,181 |
Total cash, cash equivalents, and restricted cash | 1,895,240 | 1,540,745 | 1,387,921 |
Prepaid expenses and other current assets | |||
Restricted cash | 8,929 | 6,472 | 3,602 |
Other assets | |||
Restricted cash | $ 0 | $ 0 | $ 138 |
Overview and Basis of Presentat
Overview and Basis of Presentation | 12 Months Ended |
Jan. 31, 2023 | |
Accounting Policies [Abstract] | |
Overview and Basis of Presentation | Overview and Basis of Presentation Company and Background Workday delivers applications for financial management, spend management, human capital management, planning, and analytics. With Workday, our customers have a unified system that can help them plan, execute, analyze, and extend to other applications and environments, thereby helping them continuously adapt how they manage their business and operations. We were originally incorporated in March 2005 in Nevada, and in June 2012, we reincorporated in Delaware. Fiscal Year Our fiscal year ends on January 31. References to fiscal 2023, for example, refer to the fiscal year ended January 31, 2023. Basis of Presentation These consolidated financial statements have been prepared in accordance with GAAP and include the results of Workday, Inc. and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated. Certain prior period amounts reported in our consolidated financial statements and notes thereto have been reclassified to conform to current period presentation. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires us to make certain estimates, judgements, and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Significant estimates, judgements, and assumptions include, but are not limited to, the identification of distinct performance obligations for revenue recognition, the determination of the period of benefit for deferred commissions, the fair value and useful lives of assets acquired and liabilities assumed through business combinations, and the valuation of non-marketable equity investments. Actual results could differ from those estimates, judgements, and assumptions, and such differences could be material to our consolidated financial statements. In February 2023, we completed an assessment of the useful lives of our data center equipment, including servers, network equipment, and integrated complete server and network racks. Due to advances in technology, as well as investments in software that increased efficiencies in how we operate our data center equipment, we determined we should increase the estimated useful lives of data center equipment from 3 years to 5 years. This change in accounting estimate will be effective beginning fiscal 2024. Segment Information We operate in one operating segment, cloud applications. Operating segments are defined as components of an enterprise where separate financial information is evaluated regularly by a chief operating decision maker (“CODM”) in deciding how to allocate resources and assessing performance. For fiscal 2023, our co-chief executive officers together served as CODM for purposes of segment reporting. Our CODM allocates resources and assesses performance based upon discrete financial information at the consolidated level. |
Accounting Standards and Signif
Accounting Standards and Significant Accounting Policies | 12 Months Ended |
Jan. 31, 2023 | |
Accounting Policies [Abstract] | |
Accounting Standards and Significant Accounting Policies | Accounting Standards and Significant Accounting PoliciesSummary of Significant Accounting Policies Revenue Recognition We derive our revenues from subscription services and professional services. Revenues are recognized when control of these services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to receive in exchange for services rendered. We determine revenue recognition through the following steps: • Identification of the contract, or contracts, with a customer; • Identification of the performance obligations in the contract; • Determination of the transaction price; • Allocation of the transaction price to the performance obligations in the contract; and • Recognition of revenues when, or as, we satisfy a performance obligation. Subscription Services Revenues Subscription services revenues primarily consist of fees that provide customers access to one or more of our cloud applications for financial management, spend management, human capital management, planning, and analytics, with routine customer support. Revenues are generally recognized on a ratable basis over the contract term beginning on the date that our service is made available to the customer. Our subscription contracts are generally three years or longer in length, billed annually in advance, and are generally noncancelable. Professional Services Revenues Professional services revenues primarily consist of consulting fees for deployment and optimization services, as well as training. Our consulting contracts are billed on a time and materials basis or a fixed price basis. For contracts billed on a time and materials basis, revenues are recognized over time as the professional services are performed. For contracts billed on a fixed price basis, revenues are recognized over time based on the proportion of the professional services performed. Contracts with Multiple Performance Obligations Some of our contracts with customers contain multiple performance obligations. For these contracts, we account for individual performance obligations separately if they are distinct. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. We determine the standalone selling prices based on our overall pricing objectives, taking into consideration market conditions and other factors, including the value of our contracts, the cloud applications sold, customer demographics, geographic locations, and the number and types of users within our contracts. We use a range of amounts to estimate SSP for both subscription and professional services sold together in a contract to determine whether there is a discount to be allocated based on the relative SSP of the performance obligations. We use historical sales transaction data, among other factors, to determine the SSP for each distinct performance obligation. Our SSP ranges are reassessed on a periodic basis or when facts and circumstances change. Changes in SSP for our services can evolve over time due to changes in our pricing practices that are influenced by market competition, changes in demand for our services, and other economic factors. As our go-to-market strategies evolve, we may modify our pricing practices in the future, which could result in changes to SSP and may therefore impact revenue recognized in our consolidated financial statements. Fair Value Measurement We measure our cash equivalents, marketable securities, and foreign currency derivative contracts at fair value at each reporting period using a fair value hierarchy that requires that we maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. In addition, we measure our non-marketable equity investments for which there has been an observable price change from an orderly transaction for identical or similar investments of the same issuer at fair value. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value: Level 1 — Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 — Other inputs that are directly or indirectly observable in the marketplace. Level 3 — Unobservable inputs that are supported by little or no market activity. Cash and Cash Equivalents Cash and cash equivalents consist of highly liquid investments with maturities of three months or less at the time of purchase. Our cash equivalents primarily consist of investments in U.S. treasury securities, U.S. agency obligations, corporate bonds, commercial paper, and money market funds. Debt Securities Debt securities primarily consist of investments in U.S. treasury securities, U.S. agency obligations, corporate bonds, and commercial paper. We classify our debt securities as available-for-sale at the time of purchase and reevaluate such classification as of each balance sheet date. We consider all debt securities as funds available for use in current operations, including those with maturity dates beyond one year, and therefore classify these securities as current assets on the Consolidated Balance Sheets. Debt securities included in Marketable securities on the Consolidated Balance Sheets consist of securities with original maturities at the time of purchase greater than three months, and the remaining securities are included in Cash and cash equivalents. Realized gains or losses from the sales of debt securities are based on the specific identification method. When the fair value of a debt security is below its amortized cost, the amortized cost should be written down to its fair value if (i) it is more likely than not that management will be required to sell the impaired security before recovery of its amortized basis or (ii) management has the intention to sell the security. If neither of these conditions are met, we must determine whether the impairment is due to credit losses. To determine the amount of credit losses, we compare the present value of the expected cash flows of the security, derived by taking into account the issuer’s credit ratings and remaining payment terms, with its amortized cost basis. The amount of impairment recognized is limited to the excess of the amortized cost over the fair value of the security. An allowance for credit losses for the excess of amortized cost over the expected cash flows is recorded in Other income (expense), net on the Consolidated Statements of Operations. Non-credit related impairment losses are recorded in Accumulated other comprehensive income (loss) (“AOCI”). If quoted prices for identical instruments are available in an active market, debt securities are classified within Level 1 of the fair value hierarchy. If quoted prices for identical instruments in active markets are not available, fair values are estimated using quoted prices of similar instruments and are classified within Level 2 of the fair value hierarchy. To date, all of our debt securities can be valued using one of these two methodologies. Equity Investments We determine at the inception of each arrangement whether an investment or other interest is considered a variable interest entity (“VIE”). If the investment or other interest is determined to be a VIE, we must evaluate whether we are considered the primary beneficiary. The primary beneficiary of a VIE is the party that meets both of the following criteria: (1) has the power to direct the activities that most significantly impact the VIE’s economic performance; and (2) has the obligation to absorb losses or the right to receive benefits from the VIE. For investments in VIEs in which we are considered the primary beneficiary, the assets, liabilities, and results of operations of the VIE are included in our consolidated financial statements. As of January 31, 2023, and 2022, there were no VIEs for which we were the primary beneficiary. Equity Investments Accounted for Under the Equity Method Investments in VIEs for which we are not the primary beneficiary or do not own a controlling interest but can exercise significant influence over the investee are accounted for under the equity method of accounting. These investments are measured at cost, less any impairment, plus or minus our share of earnings and losses and are included in Other assets on the Consolidated Balance Sheets. Our share of earnings and losses are recorded in Other income (expense), net on the Consolidated Statements of Operations. As of January 31, 2023, and 2022, we had no equity investments accounted for under the equity method. Non-Marketable Equity Investments Measured Using the Measurement Alternative Non-marketable equity investments measured using the measurement alternative include investments in privately held companies without readily determinable fair values in which we do not own a controlling interest or exercise significant influence. These investments are recorded at cost and are adjusted for observable transactions for same or similar securities of the same issuer or impairment events. These investments are included in Other assets on the Consolidated Balance Sheets. Additionally, we assess our non-marketable equity investments quarterly for impairment. Adjustments and impairments are recorded in Other income (expense), net on the Consolidated Statements of Operations. Marketable Equity Investments We hold marketable equity investments with readily determinable fair values over which we do not own a controlling interest or exercise significant influence. Marketable equity investments are included in Marketable securities on the Consolidated Balance Sheets. They are measured using quoted prices in active markets with changes recorded in Other income (expense), net on the Consolidated Statements of Operations. Trade and Other Receivables Trade and other receivables are primarily comprised of trade receivables that are recorded at the invoice amount, net of an allowance for credit losses. We assess our allowance for credit losses on trade receivables by taking into consideration forecasts of future economic conditions, information about past events, such as our historical trend of write-offs, and customer-specific circumstances, such as bankruptcies and disputes. The allowance for credit losses on trade receivables is recorded in operating expenses on the Consolidated Statements of Operations. Other receivables represent unbilled receivables related to subscription and professional services contracts. Deferred Commissions Sales commissions earned by our sales force are considered incremental and recoverable costs of obtaining a contract with a customer. Sales commissions for new revenue contracts are capitalized and then amortized on a straight-line basis over a period of benefit that we have determined to be five years. We determined the period of benefit by taking into consideration our customer contracts, our technology, and other factors. Amortization expense is included in Sales and marketing expenses on the Consolidated Statements of Operations. Derivative Financial Instruments and Hedging Activities We use derivative financial instruments to manage foreign currency exchange risk. Derivative instruments are measured at fair value and recorded as either an asset or liability on the Consolidated Balance Sheets. Gains and losses resulting from changes in fair value are accounted for depending on the use of the derivative and whether it is designated and qualifies for hedge accounting. For derivative instruments designated as cash flow hedges (“cash flow hedges”), which we use to hedge a portion of our forecasted foreign currency revenue and expense transactions, the gains or losses are recorded in AOCI on the Consolidated Balance Sheets and subsequently reclassified to the same line item as the hedged transaction on the Consolidated Statements of Operations in the same period that the hedged transaction affects earnings. For derivative instruments not designated as hedging instruments (“non-designated hedges”), which we use to hedge a portion of our net outstanding monetary assets and liabilities, the gains or losses are recorded in Other income (expense), net on the Consolidated Statements of Operations in the period of change. Cash flows from the settlement of forward contracts designated as cash flow hedges and non-designated hedges are classified as operating activities on the Consolidated Statements of Cash Flows. Our foreign currency contracts are classified within Level 2 of the fair value hierarchy because the valuation inputs are based on quoted prices and market observable data of similar instruments in active markets, such as currency spot and forward rates. Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation is recorded using the straight-line method over the estimated useful lives of the assets as shown in the table below. Property and equipment are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Computers, equipment, and software 2 - 10 years Buildings 10 - 60 years Leasehold improvements shorter of the related lease term or ten years Furniture, fixtures, and transportation equipment 5 - 12 years Land improvements 15 years Business Combinations We allocate the purchase consideration of acquired companies to tangible and intangible assets acquired and liabilities assumed based on their estimated fair values at the acquisition date, with the excess recorded to goodwill. Our estimates are inherently uncertain and subject to refinement. During the measurement period, which may be up to one year from the acquisition date, we may record adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed, including uncertain tax positions and tax-related valuation allowances, with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Consolidated Statements of Operations. In the event that we acquire a company in which we previously held an equity interest, the difference between the fair value of the shares as of the date of the acquisition and the carrying value of the equity investment is recorded as a non-cash gain or loss and recorded within Other income (expense), net on the Consolidated Statements of Operations. Goodwill and Acquisition-Related Intangible Assets Acquisition-related intangible assets with finite lives are amortized over their estimated useful lives. Goodwill amounts are not amortized. Acquisition-related intangible assets and goodwill are tested for impairment at least annually, and more frequently upon the occurrence of certain events. Unearned Revenue Unearned revenue primarily consists of customer billings in advance of revenues being recognized from our subscription contracts. We generally invoice our customers annually in advance for our subscription services. Our typical payment terms provide that customers pay a portion of the total arrangement fee within 30 days of the contract date. Unearned revenue that is anticipated to be recognized during the succeeding twelve-month period is recorded as current unearned revenue and the remaining portion is recorded as noncurrent. Leases We have entered into operating lease agreements for our office space, data centers, and other property and equipment. Operating lease right-of-use assets and operating lease liabilities are recognized at the lease commencement date based on the present value of the lease payments over the lease term. Right-of-use assets also include adjustments related to prepaid or deferred lease payments and lease incentives. As most of our leases do not provide an implicit interest rate, we use our incremental borrowing rate to determine the present value of lease payments. We recognize variable lease costs in the Consolidated Statements of Operations in the period incurred. Variable lease costs include common area maintenance, utilities, real estate taxes, insurance, and other operating costs that are passed on from the lessor. Options to extend or terminate a lease are included in the lease term when it is reasonably certain that we will exercise such options. Treasury Stock Treasury stock is accounted for using the cost method and recorded as a reduction to Stockholders’ equity on the Consolidated Balance Sheets. Incremental direct costs to purchase treasury stock are included in the cost of the shares acquired. To determine the cost of treasury stock that is either sold or re-issued, we use the first in, first out method. When treasury stock is re-issued at a price higher than its cost, the increase is recorded in Additional paid-in capital on the Consolidated Balance Sheets. When treasury stock is re-issued at a price lower than its cost, the decrease is recorded in Additional paid-in capital to the extent that there are previously recorded increases to offset the decrease. Any decreases in excess of that amount are recorded in Accumulated deficit on the Consolidated Balance Sheets. Advertising Expenses Advertising is expensed as incurred. Advertising expense was $172 million, $131 million, and $85 million for fiscal 2023, 2022, and 2021, respectively. Share-Based Compensation We measure and recognize compensation expense for share-based awards issued to employees and non-employees, primarily including RSUs and purchases under the Amended and Restated 2012 Employee Stock Purchase Plan (“ESPP”), on the Consolidated Statements of Operations. For RSUs, fair value is based on the closing price of our common stock on the grant date. Compensation expense, net of estimated forfeitures, is recognized on a straight-line basis over the requisite service period. The requisite service period of the awards is generally the same as the vesting period. For shares issued under the ESPP, fair value is estimated using the Black-Scholes option-pricing model. Compensation expense is recognized on a straight-line basis over the offering period. We determine the assumptions for the option-pricing model as follows: • Risk-Free Interest Rate. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the date closest to the grant date for zero-coupon U.S. Treasury notes with maturities approximately equal to the expected term of the ESPP purchase rights. • Expected Term. The expected term represents the period that our ESPP is expected to be outstanding. The expected term for the ESPP approximates the offering period. • Volatility. The volatility is based on a blend of historical volatility and implied volatility of our common stock. Implied volatility is based on market traded options of our common stock. • Dividend Yield. The dividend yield is assumed to be zero as we have not paid and do not expect to pay dividends. Income Taxes We record a provision for income taxes for the anticipated tax consequences of the reported results of operations using the asset and liability method. Under this method, we recognize deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial reporting and tax basis of assets and liabilities, as well as for operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using the tax rates that are expected to apply to taxable income for the years in which those tax assets and liabilities are expected to be realized or settled. We record a valuation allowance to reduce our deferred tax assets to the net amount that we believe is more likely than not to be realized. We recognize tax benefits from uncertain tax positions only if we believe that it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. Although we believe that we have adequately reserved for our uncertain tax positions, we can provide no assurance that the final tax outcome of these matters will not be materially different. We make adjustments to these reserves when facts and circumstances change, such as the closing of a tax audit or the refinement of an estimate. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will affect the provision for income taxes in the period in which such determination is made and could have a material impact on our financial condition and operating results. The provision for income taxes includes the effects of any accruals that we believe are appropriate, as well as the related net interest and penalties. Warranties and Indemnification Our cloud applications are generally warranted to perform materially in accordance with our online documentation under normal use and circumstances. Additionally, our contracts generally include provisions for indemnifying customers against liabilities if use of our cloud applications infringe a third party’s intellectual property rights. We may also incur liabilities if we breach the security, privacy and/or confidentiality obligations in our contracts. To date, we have not incurred any material costs, and we have not accrued any liabilities in the accompanying consolidated financial statements, as a result of these obligations. In our standard agreements with customers, we commit to defined levels of service availability and performance and, under certain circumstances, permit customers to receive credits in the event that we fail to meet those levels. In the event our failure to meet those levels triggers a termination right for a customer, we permit a terminating customer to receive a refund of prepaid amounts related to unused subscription services. To date, we have not experienced any significant failures to meet defined levels of availability and performance and, as a result, we have not accrued any liabilities related to these agreements on the consolidated financial statements. Concentrations of Risk and Significant Customers Our financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents, debt securities, and trade and other receivables. Our deposits exceed federally insured limits. No customer individually accounted for more than 10% of trade and other receivables, net as of January 31, 2023, or 2022. No customer individually accounted for more than 10% of total revenues during fiscal 2023, 2022, or 2021. Other than the United States, no country individually accounted for more than 10% of total revenues during fiscal 2023, 2022, or 2021. In order to reduce the risk of down-time of our cloud applications, we have established data centers in various geographic regions. We serve our customers and users from data center facilities operated by third parties, located in the United States, Canada, and Europe. We have internal procedures to restore services in the event of disaster at one of our data center facilities. Even with these procedures for disaster recovery in place, our cloud applications could be significantly interrupted during the implementation of the procedures to restore services. In addition, we rely upon third-party hosted infrastructure partners globally, including AWS, Google LLC, and Microsoft Corporation, to serve customers and operate certain aspects of our services. Given this, any disruption of or interference at our hosted infrastructure partners may impact our operations and our business could be adversely impacted. We are also exposed to concentration of risk in our equity investments portfolio, which consists of marketable equity investments and non-marketable equity investments measured using the measurement alternative. As of January 31, 2023, and 2022, we held one marketable equity investment with a carrying value that was individually greater than 10% of our total equity investments portfolio. Recently Adopted Accounting Pronouncements ASU No. 2021-08 In October 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured in accordance with Topic 606, Revenue from Contracts with Customers, as if the acquirer had originated the contracts. Prior to the adoption of the new standard, such assets and liabilities were recognized by the acquirer at fair value on the acquisition date. We early adopted ASU No. 2021-08 on a prospective basis effective February 1, 2022. The adoption had no impact on our consolidated financial statements during fiscal 2023, and any financial impact will be dependent on the magnitude and nature of future business combinations. |
Investments
Investments | 12 Months Ended |
Jan. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Debt Securities As of January 31, 2023, debt securities consisted of the following (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value U.S. treasury securities $ 2,455,739 $ 77 $ (6,765) $ 2,449,051 U.S. agency obligations 325,664 — (3,874) 321,790 Corporate bonds 966,801 1,617 (6,715) 961,703 Commercial paper 1,016,641 — (5) 1,016,636 Total debt securities $ 4,764,845 $ 1,694 $ (17,359) $ 4,749,180 Included in Cash and cash equivalents $ 594,864 $ — $ (1) $ 594,863 Included in Marketable securities $ 4,169,980 $ 1,694 $ (17,357) $ 4,154,317 As of January 31, 2022, debt securities consisted of the following (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value U.S. treasury securities $ 843,627 $ 5 $ (1,720) $ 841,912 U.S. agency obligations 232,093 — (1,168) 230,925 Corporate bonds 490,867 — (1,815) 489,052 Commercial paper 969,204 — — 969,204 Total debt securities $ 2,535,791 $ 5 $ (4,703) $ 2,531,093 Included in Cash and cash equivalents $ 525,524 $ — $ (1) $ 525,523 Included in Marketable securities $ 2,010,267 $ 5 $ (4,702) $ 2,005,570 As of January 31, 2023, and 2022, the fair value of debt securities in an unrealized loss position was $3.1 billion and $1.5 billion, respectively, the majority of which had been in a continuous unrealized loss position for less than 12 months. We did not recognize any credit or non-credit related losses related to our debt securities during fiscal 2023, 2022, or 2021. We sold $98 million, $162 million, and $11 million of debt securities during fiscal 2023, 2022, and 2021, respectively. The realized gains and losses from the sales were immaterial. Equity Investments Equity investments consisted of the following (in thousands): As of January 31, Consolidated Balance Sheets Location 2023 2022 Money market funds Cash and cash equivalents $ 902,226 $ 607,640 Non-marketable equity investments measured using the measurement alternative Other assets 261,922 256,643 Marketable equity investments Marketable securities 80,766 104,318 Total equity investments $ 1,244,914 $ 968,601 Total realized and unrealized gains and losses associated with our equity investments consisted of the following (in thousands): Year Ended January 31, 2023 2022 2021 Net realized gains (losses) recognized on equity investments sold (1) $ (741) $ 22,273 $ 1,667 Net unrealized gains (losses) recognized on equity investments held as of the end of the period (26,551) 121,474 18,425 Total net gains (losses) recognized in Other income (expense), net $ (27,292) $ 143,747 $ 20,092 (1) Reflects the difference between the sale proceeds and the carrying value of the equity investments at the beginning of the fiscal year. Non-Marketable Equity Investments Measured Using the Measurement Alternative The carrying values for our non-marketable equity investments are summarized below (in thousands): As of January 31, 2023 2022 Total initial cost $ 206,833 $ 192,694 Cumulative net unrealized gains (losses) 55,089 63,949 Carrying value $ 261,922 $ 256,643 In fiscal 2023, we recorded upward adjustments to the carrying value of non-marketable equity investments of $8 million and impairment losses of $16 million. In fiscal 2022, we recorded upward adjustments to the carrying value of non-marketable equity investments of $58 million and a non-cash gain of $12 million related to our acquisition of Zimit. In fiscal 2021, we recorded upward adjustments to the carrying value of non-marketable equity investments of $9 million. Marketable Equity Investments The carrying values for our marketable equity investments are summarized below (in thousands): As of January 31, 2023 2022 Total initial cost $ 38,449 $ 40,739 Cumulative net unrealized gains (losses) 42,317 63,579 Carrying value $ 80,766 $ 104,318 During fiscal 2023, we sold marketable equity investments for proceeds of $6 million, and the realized gains from the sales were not material. During fiscal 2022, we sold marketable equity investments for proceeds of $37 million, with corresponding realized gains of $7 million. There were no sales of marketable equity investments during fiscal 2021. During fiscal 2023, 2022, and 2021, we recorded unrealized net losses of $18 million, gains of $67 million, and gains of $14 million, respectively, on marketable equity investments held as of the end of each period. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jan. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Assets and Liabilities Measured at Fair Value on a Recurring Basis The following table presents information about our assets and liabilities that are measured at fair value on a recurring basis and their assigned levels within the valuation hierarchy as of January 31, 2023 (in thousands): Level 1 Level 2 Level 3 Total U.S. treasury securities $ 2,449,051 $ — $ — $ 2,449,051 U.S. agency obligations — 321,790 — 321,790 Corporate bonds — 961,703 — 961,703 Commercial paper — 1,016,636 — 1,016,636 Money market funds 902,226 — — 902,226 Marketable equity investments 80,766 — — 80,766 Foreign currency derivative assets — 64,824 — 64,824 Total assets $ 3,432,043 $ 2,364,953 $ — $ 5,796,996 Foreign currency derivative liabilities $ — $ 33,972 $ — $ 33,972 Total liabilities $ — $ 33,972 $ — $ 33,972 The following table presents information about our assets and liabilities that are measured at fair value on a recurring basis and their assigned levels within the valuation hierarchy as of January 31, 2022 (in thousands): Level 1 Level 2 Level 3 Total U.S. treasury securities $ 841,912 $ — $ — $ 841,912 U.S. agency obligations — 230,925 — 230,925 Corporate bonds — 489,052 — 489,052 Commercial paper — 969,204 — 969,204 Money market funds 607,640 — — 607,640 Marketable equity investments 104,318 — — 104,318 Foreign currency derivative assets — 39,031 — 39,031 Total assets $ 1,553,870 $ 1,728,212 $ — $ 3,282,082 Foreign currency derivative liabilities $ — $ 13,039 $ — $ 13,039 Total liabilities $ — $ 13,039 $ — $ 13,039 Non-Marketable Equity Investments Measured at Fair Value on a Non-Recurring Basis Non-marketable equity investments that have been remeasured due to an observable event or impairment are classified within Level 3 in the fair value hierarchy because we estimate the value based on valuation methods which may include a combination of the observable transaction price at the transaction date and other unobservable inputs including volatility, rights, and obligations of the investments we hold. For further information, see Note 3, Investments . Fair Value Measurements of Other Financial Instruments We carry our debt at face value less unamortized debt discount and issuance costs on our Consolidated Balance Sheets and present the fair value for disclosure purposes only. All of our debt obligations are categorized as Level 2 financial instruments. For further information on the fair values of our debt and the inputs used in the calculations, see Note 11, Debt . |
Deferred Costs
Deferred Costs | 12 Months Ended |
Jan. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Deferred Costs | Deferred CostsDeferred costs, which consist of deferred sales commissions, were $612 million and $494 million as of January 31, 2023, and 2022, respectively. Amortization expense for the deferred costs was $175 million, $139 million, and $113 million for fiscal 2023, 2022, and 2021, respectively. There was no impairment loss in relation to the costs capitalized for the periods presented.Unearned Revenue and Performance Obligations Subscription services revenues of $3.0 billion, $2.5 billion, and $2.2 billion were recognized during fiscal 2023, 2022, and 2021, respectively, that were included in the unearned revenue balances at the beginning of the respective periods. Professional services revenues recognized in the same periods from unearned revenue balances at the beginning of the respective periods were not material. Transaction Price Allocated to the Remaining Performance Obligations As of January 31, 2023, approximately $16.4 billion of revenues are expected to be recognized from remaining performance obligations for subscription contracts. We expect to recognize revenues on approximately $9.7 billion of these remaining performance obligations over the next 24 months, with the balance recognized thereafter. Revenues from remaining performance obligations for professional services contracts as of January 31, 2023, were not material. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Jan. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and Equipment, Net Property and equipment, net consisted of the following (in thousands): As of January 31, 2023 2022 Computers, equipment, and software $ 1,286,540 $ 1,071,141 Buildings 719,966 691,896 Leasehold improvements 202,101 158,037 Furniture, fixtures, and transportation equipment 90,816 79,723 Land and land improvements 81,083 80,553 Property and equipment, gross 2,380,506 2,081,350 Less accumulated depreciation and amortization (1,179,252) (958,275) Property and equipment, net $ 1,201,254 $ 1,123,075 Depreciation expense totaled $275 million, $263 million, and $231 million for fiscal 2023, 2022, and 2021, respectively. Related-Party Transactions There were no material related party transactions related to our property and equipment in fiscal 2023. Aircraft Purchase During fiscal 2022, we purchased an aircraft from an affiliate of our Co-Founder and CEO Emeritus, David Duffield, for approximately $24 million in cash. The aircraft was purchased primarily for the purpose of business travel by our Co-Founder, Co-CEO, and Chair Aneel Bhusri, and other Workday executives. In approving the related-party transaction, the Audit Committee of our Board of Directors considered the benefits to Workday of purchasing the aircraft, independent appraisals, the terms of the related purchase agreement, and the extent and nature of Mr. Duffield’s interest in the transaction. The aircraft is included in the Furniture, fixtures, and transportation equipment category in the table above. Leased Property Purchase During fiscal 2021, we entered into an agreement with an affiliate of Mr. Duffield for an option to purchase certain leased office space (“Property”) within our corporate headquarters at a price based on third-party appraisals and negotiation between Workday and the affiliated party (“Leased Property Purchase Option”). In deciding to enter into and subsequently exercise the Leased Property Purchase Option, our Board of Directors considered the benefits to Workday of purchasing the Property, including the importance of obtaining control of the Property, which is part of Workday’s headquarters campus, and the long-term cost savings from ownership as compared to continuing to lease the Property. Our Board of Directors also considered independent appraisals, comparable transaction data, and the extent and nature of Mr. Duffield’s interest in the transaction. In the first quarter of fiscal 2022, we exercised the Leased Property Purchase Option at a purchase price of $173 million in cash, reduced by a $2 million fee paid for the Leased Property Purchase Option in the prior fiscal year. The carrying value of the Property upon purchase was $158 million, calculated as the purchase price less approximately $15 million which represents the difference between the carrying values of the right-of-use asset and lease liability of the Property immediately prior to the purchase. For further information, see Note 12, Leases . |
Business Combinations
Business Combinations | 12 Months Ended |
Jan. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combinations | Business Combinations Fiscal 2022 VNDLY Acquisition On December 21, 2021, we acquired all outstanding stock of VNDLY, a cloud-based external workforce and vendor management technology. With VNDLY, Workday will provide organizations with a unified workforce optimization solution that will help organizations manage all types of workers—salaried, hourly, contingent, and outsourced—and support a holistic talent strategy, including insight into costs, workforce planning needs, and compliance. We have included the financial results of VNDLY in our consolidated financial statements from the date of acquisition. The acquisition-date fair value of the purchase consideration consisted of the following (in thousands): Cash paid to stockholders and option holders $ 473,029 Transaction costs paid by Workday on behalf of VNDLY 135 Total $ 473,164 Additionally, in connection with the acquisition, we agreed to issue approximately 152 thousand shares of our Class A common stock to certain key VNDLY employees, with 50% of such shares issued following the first anniversary of the closing date of the acquisition and the remaining 50% to be issued following the second anniversary of the closing date, subject to service conditions. The aggregate fair value of the equity was accounted for as post-acquisition share-based compensation expense. The purchase consideration was allocated to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date, with the excess recorded to goodwill. The purchase consideration allocation, which includes measurement period adjustments, was as follows (in thousands): Cash $ 22,830 Acquisition-related intangible assets 40,000 Goodwill 412,151 Other assets 2,595 Deferred tax liability (2,372) Other liabilities (2,040) Total $ 473,164 The fair values and weighted-average useful lives of the acquired intangible assets by category were as follows (in thousands, except years): Estimated Fair Values Weighted-Average Useful Lives (in Years) Developed technology $ 27,000 4 Customer relationships 13,000 13 Total acquisition-related intangible assets $ 40,000 7 The goodwill recognized was primarily attributable to the assembled workforce and the expected synergies from integrating VNDLY’s technology into our product portfolio. The goodwill is not deductible for income tax purposes. Separate operating results and pro forma results of operations for VNDLY have not been presented as the effect of this acquisition was not material to our financial results. Zimit Acquisition On September 28, 2021, we acquired all outstanding stock of Zimit, a CPQ solution built for services industries. We believe the acquisition of Zimit will accelerate our ability to deliver a comprehensive quote-to-cash process automation offering that will provide services organizations increased visibility across the entire revenue cycle. We have included the financial results of Zimit in our consolidated financial statements from the date of acquisition. The acquisition-date fair value of the purchase consideration was $76 million, with $62 million attributable to cash consideration and $14 million attributable to the fair value of a previously held equity interest. We recorded developed technology intangible assets of $7 million (to be amortized over an estimated useful life of 4 years), customer relationships intangible assets of $3 million (to be amortized over an estimated useful life of 13 years), and goodwill of $67 million. Goodwill was primarily attributable to the expected synergies from integrating Zimit’s technology into our product portfolio. The goodwill is not deductible for income tax purposes. We invested $2 million in Zimit prior to the acquisition, which was accounted for as a non-marketable equity investment. We recognized a non-cash gain of approximately $12 million as a result of remeasuring our prior equity interest in Zimit held before the business combination. The gain is included in Other income (expense), net on the Consolidated Statements of Operations. Separate operating results and pro forma results of operations for Zimit have not been presented as the effect of this acquisition was not material to our financial results. Peakon Acquisition On March 9, 2021, we acquired all outstanding stock of Peakon, an employee success platform that converts feedback into actionable insights, for $702 million. With Peakon, Workday will provide organizations with a continuous listening platform, including real-time visibility into employee experience, sentiment, and productivity, to help drive employee engagement and improve organizational performance. We have included the financial results of Peakon in our consolidated financial statements from the date of acquisition. The acquisition-date fair value of the purchase consideration consisted of the following (in thousands): Cash paid to stockholders, warrant holders, and vested option holders $ 683,788 Transaction costs paid by Workday on behalf of Peakon 17,960 Total $ 701,748 Additionally, we granted certain Peakon employees restricted stock awards (“RSAs”) with service conditions, which totaled approximately 82 thousand shares of our Class A common stock. The aggregate grant date fair value of the RSAs was accounted for as post-acquisition share-based compensation expense. The purchase consideration was allocated to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date, with the excess recorded to goodwill. The purchase consideration allocation, which includes measurement period adjustments, was as follows (in thousands): Acquisition-related intangible assets $ 170,500 Goodwill 541,611 Other assets 34,639 Deferred tax liability (20,021) Other liabilities (24,981) Total $ 701,748 The fair values and weighted-average useful lives of the acquired intangible assets by category were as follows (in thousands, except years): Estimated Fair Values Weighted-Average Useful Lives (in Years) Developed technology $ 94,000 5 Customer relationships 72,000 13 Backlog 4,000 3 Trade name 500 1 Total acquisition-related intangible assets $ 170,500 8 The goodwill recognized was primarily attributable to the assembled workforce and the expected synergies from integrating Peakon’s technology into our product portfolio. A portion of the goodwill was deductible for income tax purposes. Separate operating results and pro forma results of operations for Peakon have not been presented as the effect of this acquisition was not material to our financial results. |
Acquisition-Related Intangible
Acquisition-Related Intangible Assets, Net | 12 Months Ended |
Jan. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Acquisition-Related Intangible Assets, Net | Acquisition-Related Intangible Assets, Net Acquisition-related intangible assets, net consisted of the following (in thousands): As of January 31, 2023 2022 Developed technology $ 342,700 $ 346,300 Customer relationships 311,100 311,100 Backlog 15,000 15,000 Trade name 12,500 12,500 Acquisition-related intangible assets, gross 681,300 684,900 Less accumulated amortization (375,835) (293,898) Acquisition-related intangible assets, net $ 305,465 $ 391,002 Amortization expense related to acquisition-related intangible assets was $86 million, $78 million, and $60 million for fiscal 2023, 2022, and 2021, respectively. As of January 31, 2023, our future estimated amortization expense related to acquisition-related intangible assets was as follows (in thousands): Fiscal Period: 2024 $ 74,318 2025 61,663 2026 55,748 2027 31,177 2028 26,944 Thereafter 55,615 Total $ 305,465 |
Other Assets
Other Assets | 12 Months Ended |
Jan. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Other Assets Other noncurrent assets consisted of the following (in thousands): As of January 31, 2023 2022 Non-marketable equity and other investments $ 263,485 $ 256,759 Prepayments for goods and services 23,466 25,927 Derivative assets 21,757 16,618 Technology patents and other intangible assets, net 20,534 22,792 Net deferred tax assets 12,650 11,642 Deposits 5,819 6,701 Other 13,274 813 Total other assets $ 360,985 $ 341,252 Technology patents and other intangible assets with estimable useful lives are amortized on a straight-line basis. As of January 31, 2023, the future estimated amortization expense was as follows (in thousands): Fiscal Period: 2024 $ 3,234 2025 2,751 2026 2,496 2027 2,212 2028 2,016 Thereafter 7,825 Total $ 20,534 |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Jan. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments We conduct business on a global basis in multiple foreign currencies, subjecting Workday to foreign currency exchange risk. To mitigate this risk, we utilize derivative hedging contracts as described below. We do not enter into any derivatives for trading or speculative purposes. Cash Flow Hedges We enter into foreign currency forward contracts to hedge a portion of our forecasted revenue and expense transactions. We designate these forward contracts as cash flow hedging instruments since the accounting criteria for such designation has been met. As of January 31, 2023, we estimate that $64 million of net gains recorded in AOCI related to our cash flow hedges will be reclassified into income within the next 12 months. As of January 31, 2023, and 2022, the notional values of the cash flow hedges that we held to buy U.S. dollars in exchange for other currencies were $1.7 billion and $1.4 billion, respectively. The notional values of the cash flow hedges that we held to sell U.S. dollars in exchange for other currencies were $324 million and $355 million as of January 31, 2023, and 2022, respectively. All contracts had maturities of less than 48 months. Non-Designated Hedges We also enter into foreign currency forward contracts to hedge a portion of our net outstanding monetary assets and liabilities. These forward contracts are intended to offset foreign currency gains or losses associated with the underlying monetary assets and liabilities and are recorded on the Consolidated Balance Sheets at fair value. As of January 31, 2023, and 2022, the notional values of the non-designated hedges that we held to buy U.S. dollars in exchange for other currencies were $235 million and $217 million, respectively, and the notional values of the non-designated hedges that we held to sell U.S. dollars in exchange for other currencies were $2 million and $8 million, respectively. The fair values of outstanding derivative instruments were as follows (in thousands): Consolidated Balance Sheets Location As of January 31, 2023 2022 Derivative assets: Cash flow hedges Prepaid expenses and other current assets $ 42,968 $ 21,337 Cash flow hedges Other assets 21,757 16,618 Non-designated hedges Prepaid expenses and other current assets 99 1,076 Total derivative assets $ 64,824 $ 39,031 Derivative liabilities: Cash flow hedges Accrued expenses and other current liabilities $ 13,231 $ 7,512 Cash flow hedges Other liabilities 15,496 5,175 Non-designated hedges Accrued expenses and other current liabilities 5,244 336 Non-designated hedges Other liabilities 1 16 Total derivative liabilities $ 33,972 $ 13,039 The effect of cash flow hedges on the Consolidated Statements of Operations was as follows (in thousands): Year Ended January 31, Consolidated Statements of Operations Location 2023 2022 2021 Total Gains (losses) related to cash flow hedges Total Gains (losses) related to cash flow hedges Total Gains (losses) related to cash flow hedges Revenues $ 6,215,818 $ 17,380 $ 5,138,798 $ (8,759) $ 4,317,996 $ 18,780 Costs and expenses 6,438,018 (29,149) 5,255,248 — 4,566,595 — Income taxes 106,799 (6,092) (13,191) — 7,297 — Pre-tax gains (losses) associated with cash flow hedges were as follows (in thousands): Consolidated Statements of Operations and Statements of Comprehensive Income (Loss) Locations Year Ended January 31, 2023 2022 2021 Gains (losses) recognized in OCI Net change in unrealized gains (losses) on cash flow hedges $ 39,885 $ 63,494 $ (61,171) Gains (losses) reclassified from AOCI into income (effective portion) Revenues 17,380 (8,759) 18,780 Gains (losses) reclassified from AOCI into income (effective portion) Costs and expenses (29,149) — — Gains (losses) reclassified from AOCI into income (effective portion) Income taxes (6,092) — — Gains (losses) associated with non-designated hedges were as follows (in thousands): Consolidated Statements of Operations Location Year Ended January 31, 2023 2022 2021 Gains (losses) related to non-designated hedges Other income (expense), net $ 9,667 $ 6,664 $ (4,095) We are subject to netting agreements with all of the counterparties of the foreign exchange contracts, under which we are permitted to net settle transactions of the same currency with a single net amount payable by one party to the other. It is our policy to present the derivatives gross on the Consolidated Balance Sheets. Our foreign currency forward contracts are not subject to any credit contingent features or collateral requirements. We manage our exposure to counterparty risk by entering into contracts with a diversified group of major financial institutions and by actively monitoring outstanding positions. As of January 31, 2023, information related to these offsetting arrangements was as follows (in thousands): Gross Amounts of Recognized Assets Gross Amounts Offset on the Consolidated Balance Sheets Net Amounts of Assets Presented on the Consolidated Balance Sheets Gross Amounts Not Offset on the Consolidated Balance Sheets Net Assets Exposed Financial Instruments Cash Collateral Received Derivative assets: Counterparty A $ 15,038 $ — $ 15,038 $ (6,531) $ — $ 8,507 Counterparty B 14,264 — 14,264 (9,293) — 4,971 Counterparty C 3,410 — 3,410 (2,533) — 877 Counterparty D 28,380 — 28,380 (14,466) — 13,914 Counterparty E 3,732 — 3,732 (1,149) — 2,583 Total $ 64,824 $ — $ 64,824 $ (33,972) $ — $ 30,852 Gross Amounts of Recognized Liabilities Gross Amounts Offset on the Consolidated Balance Sheets Net Amounts of Liabilities Presented on the Consolidated Balance Sheets Gross Amounts Not Offset on the Consolidated Balance Sheets Net Liabilities Exposed Financial Instruments Cash Collateral Pledged Derivative liabilities: Counterparty A $ 6,531 $ — $ 6,531 $ (6,531) $ — $ — Counterparty B 9,293 — 9,293 (9,293) — — Counterparty C 2,533 — 2,533 (2,533) — — Counterparty D 14,466 — 14,466 (14,466) — — Counterparty E 1,149 — 1,149 (1,149) — — Total $ 33,972 $ — $ 33,972 $ (33,972) $ — $ — |
Debt
Debt | 12 Months Ended |
Jan. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt Outstanding debt consisted of the following (in thousands): As of January 31, 2023 2022 2027 Notes $ 1,000,000 $ — 2029 Notes 750,000 — 2032 Notes 1,250,000 — 2022 Notes — 1,149,817 Term loan under the 2020 Credit Agreement — 693,750 Total principal amount 3,000,000 1,843,567 Less: unamortized debt discount and issuance costs (24,066) (3,770) Net carrying amount 2,975,934 1,839,797 Less: debt, current — (1,222,443) Debt, noncurrent $ 2,975,934 $ 617,354 As of January 31, 2023, the future principal payments for the outstanding debt were as follows (in thousands): Fiscal Period: 2024 $ — 2025 — 2026 — 2027 — 2028 1,000,000 Thereafter 2,000,000 Total principal amount $ 3,000,000 Senior Notes In April 2022, we issued $3.0 billion aggregate principal amount of senior notes, consisting of $1.0 billion aggregate principal amount of 3.500% notes due April 1, 2027, $750 million aggregate principal amount of 3.700% notes due April 1, 2029, and $1.25 billion aggregate principal amount of 3.800% notes due April 1, 2032. Interest is payable semi-annually in arrears on April 1 and October 1 of each year, which commenced in October 2022. The Senior Notes are unsecured obligations and rank equally with all existing and future unsecured and unsubordinated indebtedness of Workday. We may redeem the Senior Notes in whole or in part at any time or from time to time, at specified redemption dates and prices. In addition, upon the occurrence of certain change of control triggering events, we may be required to repurchase the Senior Notes under specified terms. The indenture governing the Senior Notes also includes covenants (including certain limited covenants restricting our ability to incur certain liens and enter into certain sale and leaseback transactions), events of default, and other customary provisions. As of January 31, 2023, we were in compliance with all covenants associated with the Senior Notes. We incurred debt discount and issuance costs of approximately $27 million in connection with the Senior Notes offering, which were allocated on a pro rata basis to the 2027 Notes, 2029 Notes, and 2032 Notes. The debt discount and issuance costs are amortized on a straight-line basis, which approximates the effective interest rate method, to interest expense over the contractual term of each arrangement. The effective interest rates on the 2027 Notes, 2029 Notes, and 2032 Notes, which are calculated as the contractual interest rates adjusted for the debt discount and issuance costs, are 3.67%, 3.82%, and 3.90%, respectively. As of January 31, 2023, the total estimated fair value of the Senior Notes was $2.8 billion. The estimated fair values of the Senior Notes, which we have classified as Level 2 financial instruments, were determined based on quoted bid prices in an over-the-counter market on the last trading day of the reporting period. Credit Agreement In April 2022, we entered into the 2022 Credit Agreement which provides for a revolving credit facility in an aggregate principal amount of $1.0 billion. The 2022 Credit Agreement replaced our 2020 Credit Agreement, which provided for a term loan facility in an aggregate original principal amount of $750 million and a revolving credit facility in an aggregate principal amount of $750 million. Concurrently with entering into the 2022 Credit Agreement, we paid off the remaining principal balance of $694 million on the term loan under the 2020 Credit Agreement and terminated the revolving credit facility under the 2020 Credit Agreement which had no outstanding balance. The modification to our revolving credit facility and extinguishment of the term loan under the 2020 Credit Agreement did not have a material impact to our Consolidated Statements of Operations for fiscal 2023. As of January 31, 2023, we had no outstanding revolving loans under the 2022 Credit Agreement. The revolving loans under the 2022 Credit Agreement may be borrowed, repaid, and reborrowed until April 6, 2027, at which time all amounts borrowed must be repaid. The revolving loans under the 2022 Credit Agreement will bear interest, at our option, at a base rate plus a margin of 0.000% to 0.500% or a SOFR plus 10 basis points, plus a margin of 0.750% to 1.500%, with such margin being determined based on our consolidated leverage ratio or debt rating. We are also obligated to pay an ongoing commitment fee on undrawn amounts. The 2022 Credit Agreement contains customary representations, warranties, and affirmative and negative covenants, including a financial covenant, events of default, and indemnification provisions in favor of the lenders. The negative covenants include restrictions on the incurrence of liens and indebtedness, certain merger transactions, and other matters, all subject to certain exceptions. The financial covenant, based on a quarterly financial test, requires that we do not exceed a maximum leverage ratio of 3.50:1.00, subject to a step-up to 4.50:1.00 at our election for a certain period following an acquisition. As of January 31, 2023, we were in compliance with all covenants. Convertible Senior Notes 2022 Notes In September 2017, we issued 0.25% convertible senior notes due October 1, 2022, with a principal amount of $1.15 billion. The 2022 Notes were unsecured, unsubordinated obligations, and interest was payable in cash in arrears at a fixed rate of 0.25% on April 1 and October 1 of each year. During fiscal 2023, the 2022 Notes were converted by note holders, and we repaid the $1.15 billion principal balance in cash. We also distributed approximately 0.6 million shares of our Class A common stock to note holders during fiscal 2023, which represents the conversion value in excess of the principal amount. 2020 Notes In June 2013, we issued 1.50% convertible senior notes due July 15, 2020, with a principal amount of $250 million (the “2020 Notes”). The 2020 Notes were unsecured, unsubordinated obligations, and interest was payable in cash in arrears at a fixed rate of 1.50% on January 15 and July 15 of each year. During fiscal 2021, the 2020 Notes were converted by note holders, and we repaid the $250 million principal balance in cash. We also distributed approximately 1.7 million shares of our Class A common stock to note holders during fiscal 2021, which represents the conversion value in excess of the principal amount. Notes Hedges In connection with the issuance of the 2022 Notes and 2020 Notes, we entered into convertible note hedge transactions (“Purchased Options”) which gave us the option to purchase, subject to anti-dilution adjustments substantially identical to those in the 2022 Notes and 2020 Notes, approximately 7.8 million and 3.1 million shares of our Class A common stock, respectively, for $147.10 and $81.74 per share, respectively. During fiscal 2023 and 2021, we received approximately 0.6 million and 1.7 million shares of our Class A common stock, respectively, from the exercise of the Purchased Options, which offset economic dilution to our Class A common stock upon conversion of the 2022 Notes and 2020 Notes. These shares are held as treasury stock as of January 31, 2023. The Purchased Options were separate transactions and were not part of the terms of the 2022 Notes and 2020 Notes, and expired on October 1, 2022, and July 15, 2020, respectively. Warrants In connection with the issuance of the 2022 Notes and 2020 Notes, we also entered into warrant transactions to sell warrants (“Warrants”) to acquire, subject to anti-dilution adjustments, up to approximately 7.8 million shares of our Class A common stock over 60 scheduled trading days beginning in January 2023 and 3.1 million shares of our Class A common stock over 60 scheduled trading days beginning in October 2020 at an exercise price of $213.96 and $107.96 per share, respectively. The Warrants related to the 2022 Notes will be net share settled, and the resulting number of shares of our common stock we will issue depends on the daily volume-weighted average stock prices over the 60 scheduled trading day period beginning on the first expiration date of the Warrants. If the market value per share of our Class A common stock exceeds the applicable exercise price of the Warrants, the Warrants will have a dilutive effect on our earnings per share, assuming that we are profitable. If the Warrants are not exercised on their exercise dates, they will expire. The Warrants are separate transactions and are not part of the terms of the 2022 Notes or the Purchased Options. As of January 31, 2023, 2.6 million Warrants expired without exercise, and 5.2 million Warrants remained outstanding. The Warrants related to the 2020 Notes were exercised during the third and fourth quarters of fiscal 2021, and we distributed approximately 1.6 million shares of our Class A common stock to warrant holders primarily utilizing treasury stock. As of January 31, 2021, there were no Warrants outstanding related to the 2020 Notes. Interest Expense on Debt The following table sets forth total interest expense recognized related to our debt (in thousands): Year Ended January 31, 2023 2022 2021 Contractual interest expense $ 95,265 $ 12,525 $ 15,012 Interest cost related to amortization and write-off of debt discount and issuance costs 6,955 3,988 53,693 Total interest expense $ 102,220 $ 16,513 $ 68,705 |
Leases
Leases | 12 Months Ended |
Jan. 31, 2023 | |
Leases [Abstract] | |
Leases | Leases We have entered into operating lease agreements for our office space, data centers, and other property and equipment. Operating lease right-of-use assets were $249 million and $248 million as of January 31, 2023, and 2022, respectively, and operating lease liabilities were $273 million and $263 million as of January 31, 2023, and 2022, respectively. We have also entered into finance lease agreements for other property and equipment. As of January 31, 2023, and 2022, finance leases were not material. The components of operating lease expense were as follows (in thousands): Year Ended January 31, 2023 2022 2021 Operating lease cost $ 99,084 $ 93,045 $ 94,183 Short-term lease cost 3,876 6,638 14,544 Variable lease cost 44,841 25,743 17,708 Total operating lease cost $ 147,801 $ 125,426 $ 126,435 Supplemental cash flow information related to our operating leases was as follows (in thousands): Year Ended January 31, 2023 2022 2021 Cash paid for operating lease liabilities $ 93,868 $ 91,402 $ 87,450 Operating lease right-of-use assets obtained in exchange for new operating lease liabilities 95,702 54,846 205,103 Other information related to our operating leases was as follows: As of January 31, 2023 2022 Weighted average remaining lease term (in years) 5 5 Weighted average discount rate 2.79 % 2.35 % As of January 31, 2023, maturities of operating lease liabilities were as follows (in thousands): Fiscal Period: 2024 $ 97,387 2025 78,696 2026 49,103 2027 28,333 2028 19,808 Thereafter 27,494 Total lease payments 300,821 Less imputed interest (27,679) Total operating lease liabilities $ 273,142 As of January 31, 2023, we had entered into additional operating leases for data centers and office space that had not yet commenced with total undiscounted lease payments of $66 million. These operating leases will commence in fiscal 2024 and fiscal 2025, with lease terms ranging from five Related-Party Transactions There were no material related party transactions related to our leases in fiscal 2023. Leased Property Purchase As discussed in Note 6, Property and Equipment, Net, during fiscal 2021, we entered into an agreement with an affiliated party which gave us the option to purchase certain leased properties within our corporate headquarters. We exercised the Leased Property Purchase Option in the first quarter of fiscal 2022 at a purchase price of $173 million in cash, reduced by a $2 million fee paid for the Leased Property Purchase Option in the prior fiscal year. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Purchase Obligations Our purchase obligations are primarily related to agreements for third-party hosted infrastructure platforms, data center equipment and software, business technology software and support, and sales and marketing activities. These obligations consist of agreements to purchase goods and services that are enforceable and legally binding, and specify all significant terms and the approximate timing of the payments. For purchase obligations with cancellation provisions, the amounts included in the following table were limited to the non-cancelable portion of the agreement terms or the minimum cancellation fees. Future payments under purchase obligations with a remaining term in excess of one year as of January 31, 2023, were as follows (in thousands): Third-Party Hosted Infrastructure Platform Obligations Other Purchase Obligations Fiscal Period: 2024 $ 40,000 $ 115,386 2025 72,235 71,281 2026 165,391 65,895 2027 120,000 39,427 2028 150,000 44,889 Thereafter — 35,395 Total $ 547,626 $ 372,273 Legal Matters We are a party to various legal proceedings and claims that arise in the ordinary course of business. We make a provision for a liability relating to legal matters when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These provisions are reviewed at least quarterly and adjusted to reflect the impacts of negotiations, settlements, rulings, advice of legal counsel, and other information and events pertaining to a particular matter. In our opinion, as of January 31, 2023, there was not at least a reasonable possibility that we had incurred a material loss, or a material loss in excess of a recorded accrual, with respect to such loss contingencies. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Jan. 31, 2023 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Common Stock As of January 31, 2023, there were 203 million shares of Class A common stock, net of treasury stock, and 55 million shares of Class B common stock outstanding. The rights of the holders of Class A common stock and Class B common stock are identical, except with respect to voting and conversion. Each share of Class A common stock is entitled to one vote per share and each share of Class B common stock is entitled to 10 votes per share. Each share of Class B common stock can be converted into a share of Class A common stock at any time at the option of the holder. All of our Class A and Class B shares will convert to a single class of common stock upon the date that is the first to occur of (i) October 17, 2032, (ii) such time as the shares of Class B common stock represent less than 9% of the outstanding Class A common stock and Class B common stock, (iii) nine months following the death of both Mr. Duffield and Mr. Bhusri, and (iv) the date on which the holders of a majority of the shares of Class B common stock elect to convert all shares of Class A common stock and Class B common stock into a single class of common stock. Share Repurchase Program In November 2022, our Board of Directors authorized the repurchase of up to $500 million of our outstanding shares of Class A common stock. We may repurchase shares of Class A common stock from time to time through open market purchases, in privately negotiated transactions, or by other means, including through the use of trading plans intended to qualify under Rule 10b5-1 under the Exchange Act, in accordance with applicable securities laws and other restrictions. The timing and total amount of stock repurchases will depend upon business, economic, and market conditions, corporate and regulatory requirements, prevailing stock prices, and other considerations. The Share Repurchase Program has a term of 18 months, may be suspended or discontinued at any time, and does not obligate us to acquire any amount of Class A common stock. During fiscal 2023, we repurchased approximately 0.5 million shares of Class A common stock for approximately $75 million at an average price per share of $165.75. All repurchases were made in open market transactions. As of January 31, 2023, we were authorized to purchase a remaining $425 million of our outstanding shares of Class A common stock under the Share Repurchase Program. Employee Equity Plans On June 22, 2022, our stockholders approved the 2022 Equity Incentive Plan (“2022 Plan”), with a reserve of 30 million shares for issuance. The 2022 Plan serves as the successor to our 2012 Equity Incentive Plan (“2012 Plan” and, together with the 2022 Plan, “Stock Plans”). Awards that are granted on or after the effective date of the 2022 Plan will be granted pursuant to and subject to the terms and provisions of the 2022 Plan. Prior awards granted under the 2012 Plan continue to be subject to the terms and provisions of the 2012 Plan. As of January 31, 2023, we had 28 million shares of Class A common stock available for future grants. On June 22, 2022, our stockholders approved the ESPP. Under the ESPP, eligible employees are granted options to purchase shares at the lower of 85% of the fair market value of the stock at the time of grant or 85% of the fair market value at the time of exercise. Options to purchase shares are granted twice yearly on or about June 1 and December 1, and are exercisable on or about the succeeding November 30 and May 31, respectively. Pursuant to the terms of the ESPP, the share reserve increased by 2 million shares on March 31, 2022. As of January 31, 2023, 5 million shares of Class A common stock were available for issuance under the ESPP. Restricted Stock Units The Stock Plans provide for the issuance of RSUs to employees and non-employees. RSUs generally vest over four years. RSU activity during fiscal 2023 was as follows (in thousands, except per share data): Number of Shares Weighted-Average Grant Date Fair Value Balance as of January 31, 2022 11,808 $ 209.12 RSUs granted 9,184 200.98 RSUs vested (5,466) 203.51 RSUs forfeited (1,427) 205.26 Balance as of January 31, 2023 14,099 206.38 The weighted-average grant date fair value of RSUs granted during fiscal 2023, 2022, and 2021 was $200.98, $259.61, and $152.70, respectively. The total fair value of RSUs vested as of the vesting dates during fiscal 2023, 2022, and 2021 was $977 million, $1.6 billion, and $1.1 billion, respectively. In the fourth quarter of fiscal 2023, we modified the vesting date of all unvested RSU awards from the 15th to the 5th of each month. This change impacted awards vesting after December 31, 2022, and resulted in an acceleration of share-based compensation expense of $28 million. As of January 31, 2023, there was a total of $2.1 billion in unrecognized compensation cost, adjusted for estimated forfeitures, related to unvested RSUs, which is expected to be recognized over a weighted-average period of approximately three years. Market-Based Restricted Stock Units In December 2022, 0.3 million shares of market-based RSUs were granted to our newly appointed Co-CEO that vest based on appreciation of the price of our Class A common stock over a multi-year period and upon continued service (“PVU Award”). We estimated the fair value of the PVU Award on the grant date using the Monte Carlo simulation model with the following assumptions: (i) expected volatility of 40%, (ii) risk-free interest rate of 4%, and (iii) total performance period of six years. The weighted-average grant date fair value of the PVU Award was $124.80 per share. We recognize expense for the PVU Award over the requisite service period of five years using the accelerated attribution method. Provided that the requisite service is rendered, the total fair value of the PVU Award at the date of grant is recognized as compensation expense even if the market condition is not achieved. However, the number of shares that ultimately vest can vary significantly with the achievement of the specified market criteria. As of January 31, 2023, there was a total of $35 million in unrecognized compensation cost related to the PVU Award, which is expected to be recognized over approximately five years. Performance-Based Restricted Stock Units During fiscal 2022, 0.4 million shares of PRSUs were granted to employees below the level of vice president that included both service conditions and performance conditions related to company-wide goals. These performance conditions were met and the PRSUs vested on March 15, 2022. We did not grant any company-wide PRSUs in fiscal 2023. Stock Options The Stock Plans provide for the issuance of incentive and nonstatutory stock options to employees and non-employees. Stock options issued under the Stock Plans generally are exercisable for periods not to exceed ten years and generally vest over five years. Stock option activity during fiscal 2023 was as follows (in thousands, except aggregate intrinsic value which is reflected in millions and per share data): Outstanding Stock Options Weighted-Average Exercise Price Aggregate Intrinsic Value Balance as of January 31, 2022 387 $ 20.09 $ 90 Stock options exercised (228) 15.66 Stock options canceled (44) 16.20 Balance as of January 31, 2023 115 30.36 17 Vested and expected to vest as of January 31, 2023 115 30.36 17 Exercisable as of January 31, 2023 115 30.34 17 The total grant date fair value of stock options vested during fiscal 2023, 2022, and 2021 was $1 million, $8 million, and $23 million, respectively. The total intrinsic value of stock options exercised during fiscal 2023, 2022, and 2021 was $41 million, $209 million, and $396 million, respectively. The intrinsic value is the difference between the current fair value of the stock and the exercise price of the stock option. As of January 31, 2023, unrecognized compensation cost related to unvested stock options was not material. The stock options that are exercisable as of January 31, 2023, have a weighted-average remaining contractual life of approximately five years. The weighted-average remaining contractual life of vested and expected to vest stock options as of January 31, 2023, is approximately five years, and the weighted-average remaining contractual life of outstanding stock options as of January 31, 2023, is approximately five years. Employee Stock Purchase Plan For fiscal 2023, approximately 1 million shares of Class A common shares were purchased under the ESPP at a weighted-average price of $132.95 per share, resulting in cash proceeds of $149 million. The fair value of stock purchase rights granted under the ESPP was estimated using the following assumptions: Year Ended January 31, 2023 2022 2021 Expected volatility 46.2% - 48.5% 30.4% - 41.5% 36.9% - 51.0% Expected term (in years) 0.5 0.5 0.5 Risk-free interest rate 1.63% - 4.65% 0.04% - 0.10% 0.10% - 1.62% Dividend yield —% —% —% Grant date fair value per share $156.56 - $169.48 $225.70 - $260.86 $146.14 - $191.85 |
Unearned Revenue and Performanc
Unearned Revenue and Performance Obligations | 12 Months Ended |
Jan. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Unearned Revenue and Performance Obligations | Deferred CostsDeferred costs, which consist of deferred sales commissions, were $612 million and $494 million as of January 31, 2023, and 2022, respectively. Amortization expense for the deferred costs was $175 million, $139 million, and $113 million for fiscal 2023, 2022, and 2021, respectively. There was no impairment loss in relation to the costs capitalized for the periods presented.Unearned Revenue and Performance Obligations Subscription services revenues of $3.0 billion, $2.5 billion, and $2.2 billion were recognized during fiscal 2023, 2022, and 2021, respectively, that were included in the unearned revenue balances at the beginning of the respective periods. Professional services revenues recognized in the same periods from unearned revenue balances at the beginning of the respective periods were not material. Transaction Price Allocated to the Remaining Performance Obligations As of January 31, 2023, approximately $16.4 billion of revenues are expected to be recognized from remaining performance obligations for subscription contracts. We expect to recognize revenues on approximately $9.7 billion of these remaining performance obligations over the next 24 months, with the balance recognized thereafter. Revenues from remaining performance obligations for professional services contracts as of January 31, 2023, were not material. |
Other Income (Expense), Net
Other Income (Expense), Net | 12 Months Ended |
Jan. 31, 2023 | |
Other Income and Expenses [Abstract] | |
Other Income (Expense), Net | Other Income (Expense), Net Other income (expense), net consisted of the following (in thousands): Year Ended January 31, 2023 2022 2021 Interest income $ 97,709 $ 5,575 $ 18,788 Interest expense (1) (102,353) (16,602) (68,806) Other (2) (33,106) 143,659 23,483 Total other income (expense), net $ (37,750) $ 132,632 $ (26,535) (1) Interest expense primarily includes the contractual interest expense of our debt obligations, and the related non-cash interest expense attributable to amortization of the debt discount and issuance costs. For further information, see Note 11, Debt . (2) Other primarily includes the net gains (losses) from our equity investments. For further information, see Note 3, Investments |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of income (loss) before provision for (benefit from) income taxes were as follows (in thousands): Year Ended January 31, 2023 2022 2021 Domestic $ (59,376) $ 309,061 $ (140,352) Foreign (200,574) (292,879) (134,782) Income (loss) before provision for (benefit from) income taxes $ (259,950) $ 16,182 $ (275,134) The provision for (benefit from) income taxes consisted of the following (in thousands): Year Ended January 31, 2023 2022 2021 Current: Federal $ 209 $ — $ — State 14,316 763 1,524 Foreign 96,722 7,300 9,248 Total 111,247 8,063 10,772 Deferred: Federal 623 (1,953) (81) State 667 (721) (177) Foreign (5,738) (18,580) (3,217) Total (4,448) (21,254) (3,475) Provision for (benefit from) income taxes $ 106,799 $ (13,191) $ 7,297 The items accounting for the difference between income taxes computed at the federal statutory income tax rate and the provision for (benefit from) income taxes consisted of the following: Year Ended January 31, 2023 2022 2021 Federal statutory rate 21.0 % 21.0 % 21.0 % Effect of: Foreign income at other than U.S. rates (44.7) % 321.0 % (13.1) % Intercompany transactions 3.5 % (158.2) % 1.0 % Research tax credits 26.5 % (447.7) % 26.6 % State taxes, net of federal benefit (4.7) % (0.7) % (0.5) % Changes in valuation allowance (14.9) % 558.5 % (56.3) % Share-based compensation (26.5) % (365.4) % 19.0 % Permanent difference (0.9) % 4.6 % (0.3) % Nontaxable gain on investment — % (15.7) % 0.0 % Other (0.4) % 1.0 % (0.1) % Total (41.1) % (81.6) % (2.7) % As a result of our history of net operating losses, the current provision for income taxes primarily relates to state income taxes and the current foreign provision from our profitable foreign entities. The domestic income tax provision was primarily related to an increase in state taxes due to capitalized research and development expenditures. The foreign income tax provision was primarily attributable to a taxable gain recognized from an intercompany sale of intellectual property and income tax expenses in profitable foreign jurisdictions. On August 16, 2022, the U.S. enacted the Inflation Reduction Act (“IRA”) of 2022, which, among other things, implemented a 15% minimum tax on book income of certain large corporations, a 1% excise tax on net stock repurchases, and several tax incentives to promote clean energy. The provisions of the IRA had no impact to our fiscal 2023 income tax provision. The 2017 Tax Cuts and Jobs Act requires research and development expenditures incurred for the tax year beginning after December 31, 2021, to be capitalized and amortized ratably over five years for domestic research and fifteen years for international research. The mandatory capitalization requirement had no material impact to our fiscal 2023 income tax provision due to our tax attributes carryover and full valuation allowance position. Significant components of our deferred tax assets and liabilities were as follows (in thousands): As of January 31, 2023 2022 Deferred tax assets: Unearned revenue $ 10,590 $ 16,877 Other reserves and accruals 60,419 28,629 Tax attributes carryforward 1,574,849 1,790,396 Capitalized research and development expense 255,384 — Property and equipment 29,833 23,977 Share-based compensation 75,373 71,191 Intangibles 503,256 422,985 Operating lease liabilities 63,278 60,714 Other 27,364 39,373 Total deferred tax assets 2,600,346 2,454,142 Valuation allowance (2,358,496) (2,242,901) Deferred tax assets, net of valuation allowance 241,850 211,241 Deferred tax liabilities: Deferred commissions (126,618) (102,682) Operating lease right-of-use assets (57,419) (57,001) Other (46,695) (43,990) Total deferred tax liabilities (230,732) (203,673) Net deferred tax assets $ 11,118 $ 7,568 We regularly assess the need for a valuation allowance against our deferred tax assets by considering both positive and negative evidence related to whether it is more likely than not that our deferred tax assets will be realized. In evaluating the need for a valuation allowance, we consider the cumulative losses in recent years as a significant piece of negative evidence that is generally difficult to overcome. As of January 31, 2023, we continue to maintain a full valuation allowance against our U.S. federal, state, and certain foreign jurisdiction deferred tax assets. As of January 31, 2023, we recorded a valuation allowance of $2.4 billion for the portion of the deferred tax assets that we do not expect to be realized. The valuation allowance on our net deferred tax assets increased by $116 million and $159 million during fiscal 2023 and 2022, respectively. The increase in the valuation allowance during fiscal 2023 is mainly due to an increase in deferred tax assets on amortization of intangibles from business combinations and capitalized research and development expenditures and credits, which are partially offset by the utilization of net operating losses. As of January 31, 2023, we had approximately $2.8 billion of federal, $2.8 billion of state, and $3.0 billion of foreign net operating loss and other tax attributes carryforwards available to offset future taxable income. If not utilized, the pre-fiscal 2018 federal and the state net operating loss carryforwards expire in varying amounts between fiscal 2024 and 2043. The federal net operating losses generated in and after fiscal 2018 and the foreign net operating losses and other tax attributes do not expire and may be carried forward indefinitely. We also had approximately $310 million of federal and $294 million of California research and development tax credit carryforwards as of January 31, 2023. The federal credits expire in varying amounts between fiscal 2024 and 2043. The California research credits do not expire and may be carried forward indefinitely. Our ability to utilize the net operating loss and tax credit carryforwards in the future may be subject to substantial restrictions in the event of past or future ownership changes as defined in Section 382 of the Internal Revenue Code of 1986, as amended, and similar state tax law. We intend to permanently reinvest any future earnings in our foreign operations unless such earnings are subject to U.S. federal income taxes. As of January 31, 2023, we estimate any such hypothetical foreign withholding tax expense to be immaterial to our financial statements. A reconciliation of the gross unrecognized tax benefit is as follows (in thousands): Year Ended January 31, 2023 2022 2021 Unrecognized tax benefits at the beginning of the period $ 173,929 $ 159,862 $ 143,621 Additions for tax positions taken in prior years 742 572 4,640 Reductions for tax positions taken in prior years — (1,030) (2,347) Additions for tax positions related to the current year 21,207 14,918 15,158 Reductions related to a lapse of applicable statute of limitations (84) — (807) Reductions related to settlements — (393) (403) Unrecognized tax benefits at the end of the period $ 195,794 $ 173,929 $ 159,862 Our policy is to include interest and penalties related to unrecognized tax benefits within our provision for income taxes. We did not accrue any material interest expense or penalties during fiscal 2023, 2022, or 2021. Of the total amount of unrecognized tax benefits of $196 million, $7 million, if recognized, would impact the effective tax rate as of January 31, 2023. We file federal, state, and foreign income tax returns in jurisdictions with varying statutes of limitations. Due to our net operating loss carryforwards, our income tax returns generally remain subject to examination by federal and most state and foreign tax authorities. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 12 Months Ended |
Jan. 31, 2023 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | Net Income (Loss) Per Share Basic net income (loss) per share is computed by dividing net income (loss) by the weighted-average number of shares of common stock outstanding during the period, net of treasury stock. Diluted net income (loss) per share is computed by giving effect to all potentially dilutive shares of common stock, including our convertible senior notes, outstanding warrants related to the issuance of the convertible senior notes, and outstanding share-based awards consisting primarily of unvested RSUs and ESPP obligations. The net income (loss) per share is allocated based on the contractual participation rights of the Class A common shares and Class B common shares as if the income (loss) for the period had been distributed. As the liquidation and dividend rights are identical, the net income (loss) is allocated on a proportionate basis. The computation of the diluted net income (loss) per share of Class A common stock assumes the conversion of our Class B common stock to Class A common stock, while the diluted net income (loss) per share of Class B common stock does not assume the conversion of those shares. Basic and diluted net loss per share was the same for fiscal 2023 and 2021, as the inclusion of all potential common shares outstanding would have been anti-dilutive. The following table presents the calculation of basic and diluted net income (loss) per share (in thousands, except per share data): Year Ended January 31, 2023 2022 2021 Class A Class B Class A Class B Class A Class B Net income (loss) per share, basic: Numerator: Net income (loss) $ (287,570) $ (79,179) $ 22,556 $ 6,817 $ (210,637) $ (71,794) Denominator: Weighted-average shares outstanding, basic 199,805 55,014 189,864 57,385 176,758 60,261 Net income (loss) per share, basic $ (1.44) $ (1.44) $ 0.12 $ 0.12 $ (1.19) $ (1.19) Net income (loss) per share, diluted: Numerator: Net income (loss) $ (287,570) $ (79,179) $ 22,556 $ 6,817 $ (210,637) $ (71,794) Reallocation of net income as a result of conversion of Class B to Class A common stock — — 6,817 — — — Reallocation of net income to Class B common stock — — — (182) — — Net income (loss) for diluted calculation (287,570) (79,179) 29,373 6,635 (210,637) (71,794) Denominator: Weighted-average shares outstanding, basic 199,805 55,014 189,864 57,385 176,758 60,261 Conversion of Class B to Class A common stock — — 57,385 — — — Dilutive effect of share-based awards — — 5,549 — — — Dilutive effect of warrants related to the issuance of convertible senior notes — — 1,234 — — — Weighted-average shares outstanding, diluted 199,805 55,014 254,032 57,385 176,758 60,261 Net income (loss) per share, diluted $ (1.44) $ (1.44) $ 0.12 $ 0.12 $ (1.19) $ (1.19) The computation of diluted net income (loss) per share does not include the effect of the following potentially outstanding weighted-average shares of common stock. The effects of these potentially outstanding shares were not included in the calculation of diluted net income (loss) per share because the effect would have been anti-dilutive (in thousands): Year Ended January 31, 2023 2022 2021 Shares related to outstanding share-based awards 15,454 1,436 15,366 Shares related to the convertible senior notes 5,182 7,817 9,205 Shares subject to warrants related to the issuance of convertible senior notes 7,762 — 10,392 Total 28,398 9,253 34,963 |
Geographic Information
Geographic Information | 12 Months Ended |
Jan. 31, 2023 | |
Segment Reporting [Abstract] | |
Geographic Information | Geographic Information Revenues We sell our subscription contracts and related services in two primary geographical markets: to customers located in the United States and to customers located outside of the United States. Revenues by geography are generally based on the address of the customer as specified in our customer subscription agreement. The following table sets forth revenues by geographic area (in thousands): Year Ended January 31, 2023 2022 2021 United States $ 4,682,285 $ 3,845,412 $ 3,249,127 Other countries 1,533,533 1,293,386 1,068,869 Total revenues $ 6,215,818 $ 5,138,798 $ 4,317,996 Long-Lived Assets Our long-lived assets, which primarily consist of property and equipment and operating lease right-of-use assets, are attributed to a country based on the physical location of the assets. Aggregate Property and equipment, net and Operating lease right-of-use assets by geographic area was as follows (in thousands): As of January 31, 2023 2022 United States $ 1,206,486 $ 1,174,371 Ireland 159,337 117,049 Other countries 84,709 79,463 Total long-lived assets $ 1,450,532 $ 1,370,883 |
401(k) Plan
401(k) Plan | 12 Months Ended |
Jan. 31, 2023 | |
Retirement Benefits [Abstract] | |
401(k) Plan | 401(k) PlanWe have a qualified defined contribution plan under Section 401(k) of the Internal Revenue Code covering eligible employees. We match a certain portion of employee contributions up to a fixed maximum per employee. Our contributions to the plan were $57 million, $46 million, and $42 million during fiscal 2023, 2022, and 2021, respectively. |
Accounting Standards and Sign_2
Accounting Standards and Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 31, 2023 | |
Accounting Policies [Abstract] | |
Fiscal Year | Fiscal Year Our fiscal year ends on January 31. References to fiscal 2023, for example, refer to the fiscal year ended January 31, 2023. |
Basis of Presentation | Basis of Presentation These consolidated financial statements have been prepared in accordance with GAAP and include the results of Workday, Inc. and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires us to make certain estimates, judgements, and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Significant estimates, judgements, and assumptions include, but are not limited to, the identification of distinct performance obligations for revenue recognition, the determination of the period of benefit for deferred commissions, the fair value and useful lives of assets acquired and liabilities assumed through business combinations, and the valuation of non-marketable equity investments. Actual results could differ from those estimates, judgements, and assumptions, and such differences could be material to our consolidated financial statements. In February 2023, we completed an assessment of the useful lives of our data center equipment, including servers, network equipment, and integrated complete server and network racks. Due to advances in technology, as well as investments in software that increased efficiencies in how we operate our data center equipment, we determined we should increase the estimated useful lives of data center equipment from 3 years to 5 years. This change in accounting estimate will be effective beginning fiscal 2024. |
Segment Information | Segment Information We operate in one operating segment, cloud applications. Operating segments are defined as components of an enterprise where separate financial information is evaluated regularly by a chief operating decision maker (“CODM”) in deciding how to allocate resources and assessing performance. For fiscal 2023, our co-chief executive officers together served as CODM for purposes of segment reporting. Our CODM allocates resources and assesses performance based upon discrete financial information at the consolidated level. |
Revenue Recognition, Deferred Commissions and Unearned Revenue | Revenue Recognition We derive our revenues from subscription services and professional services. Revenues are recognized when control of these services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to receive in exchange for services rendered. We determine revenue recognition through the following steps: • Identification of the contract, or contracts, with a customer; • Identification of the performance obligations in the contract; • Determination of the transaction price; • Allocation of the transaction price to the performance obligations in the contract; and • Recognition of revenues when, or as, we satisfy a performance obligation. Subscription Services Revenues Subscription services revenues primarily consist of fees that provide customers access to one or more of our cloud applications for financial management, spend management, human capital management, planning, and analytics, with routine customer support. Revenues are generally recognized on a ratable basis over the contract term beginning on the date that our service is made available to the customer. Our subscription contracts are generally three years or longer in length, billed annually in advance, and are generally noncancelable. Professional Services Revenues Professional services revenues primarily consist of consulting fees for deployment and optimization services, as well as training. Our consulting contracts are billed on a time and materials basis or a fixed price basis. For contracts billed on a time and materials basis, revenues are recognized over time as the professional services are performed. For contracts billed on a fixed price basis, revenues are recognized over time based on the proportion of the professional services performed. Contracts with Multiple Performance Obligations Some of our contracts with customers contain multiple performance obligations. For these contracts, we account for individual performance obligations separately if they are distinct. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. We determine the standalone selling prices based on our overall pricing objectives, taking into consideration market conditions and other factors, including the value of our contracts, the cloud applications sold, customer demographics, geographic locations, and the number and types of users within our contracts. We use a range of amounts to estimate SSP for both subscription and professional services sold together in a contract to determine whether there is a discount to be allocated based on the relative SSP of the performance obligations. We use historical sales transaction data, among other factors, to determine the SSP for each distinct performance obligation. Our SSP ranges are reassessed on a periodic basis or when facts and circumstances change. Changes in SSP for our services can evolve over time due to changes in our pricing practices that are influenced by market competition, changes in demand for our services, and other economic factors. As our go-to-market strategies evolve, we may modify our pricing practices in the future, which could result in changes to SSP and may therefore impact revenue recognized in our consolidated financial statements. Unearned Revenue Unearned revenue primarily consists of customer billings in advance of revenues being recognized from our subscription contracts. We generally invoice our customers annually in advance for our subscription services. Our typical payment terms provide that customers pay a portion of the total arrangement fee within 30 days of the contract date. Unearned revenue that is anticipated to be recognized during the succeeding twelve-month period is recorded as current unearned revenue and the remaining portion is recorded as noncurrent. |
Fair Value Measurement | Fair Value Measurement We measure our cash equivalents, marketable securities, and foreign currency derivative contracts at fair value at each reporting period using a fair value hierarchy that requires that we maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. In addition, we measure our non-marketable equity investments for which there has been an observable price change from an orderly transaction for identical or similar investments of the same issuer at fair value. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value: Level 1 — Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 — Other inputs that are directly or indirectly observable in the marketplace. Level 3 — Unobservable inputs that are supported by little or no market activity. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of highly liquid investments with maturities of three months or less at the time of purchase. Our cash equivalents primarily consist of investments in U.S. treasury securities, U.S. agency obligations, corporate bonds, commercial paper, and money market funds. |
Debt Securities and Marketable Equity Investments | Debt Securities Debt securities primarily consist of investments in U.S. treasury securities, U.S. agency obligations, corporate bonds, and commercial paper. We classify our debt securities as available-for-sale at the time of purchase and reevaluate such classification as of each balance sheet date. We consider all debt securities as funds available for use in current operations, including those with maturity dates beyond one year, and therefore classify these securities as current assets on the Consolidated Balance Sheets. Debt securities included in Marketable securities on the Consolidated Balance Sheets consist of securities with original maturities at the time of purchase greater than three months, and the remaining securities are included in Cash and cash equivalents. Realized gains or losses from the sales of debt securities are based on the specific identification method. When the fair value of a debt security is below its amortized cost, the amortized cost should be written down to its fair value if (i) it is more likely than not that management will be required to sell the impaired security before recovery of its amortized basis or (ii) management has the intention to sell the security. If neither of these conditions are met, we must determine whether the impairment is due to credit losses. To determine the amount of credit losses, we compare the present value of the expected cash flows of the security, derived by taking into account the issuer’s credit ratings and remaining payment terms, with its amortized cost basis. The amount of impairment recognized is limited to the excess of the amortized cost over the fair value of the security. An allowance for credit losses for the excess of amortized cost over the expected cash flows is recorded in Other income (expense), net on the Consolidated Statements of Operations. Non-credit related impairment losses are recorded in Accumulated other comprehensive income (loss) (“AOCI”). If quoted prices for identical instruments are available in an active market, debt securities are classified within Level 1 of the fair value hierarchy. If quoted prices for identical instruments in active markets are not available, fair values are estimated using quoted prices of similar instruments and are classified within Level 2 of the fair value hierarchy. To date, all of our debt securities can be valued using one of these two methodologies. Marketable Equity Investments We hold marketable equity investments with readily determinable fair values over which we do not own a controlling interest or exercise significant influence. Marketable equity investments are included in Marketable securities on the Consolidated Balance Sheets. They are measured using quoted prices in active markets with changes recorded in Other income (expense), net on the Consolidated Statements of Operations. |
Equity Investments | Equity InvestmentsWe determine at the inception of each arrangement whether an investment or other interest is considered a variable interest entity (“VIE”). If the investment or other interest is determined to be a VIE, we must evaluate whether we are considered the primary beneficiary. The primary beneficiary of a VIE is the party that meets both of the following criteria: (1) has the power to direct the activities that most significantly impact the VIE’s economic performance; and (2) has the obligation to absorb losses or the right to receive benefits from the VIE. For investments in VIEs in which we are considered the primary beneficiary, the assets, liabilities, and results of operations of the VIE are included in our consolidated financial statements. As of January 31, 2023, and 2022, there were no VIEs for which we were the primary beneficiary. |
Equity Investments Accounted for Under the Equity Method | Equity Investments Accounted for Under the Equity MethodInvestments in VIEs for which we are not the primary beneficiary or do not own a controlling interest but can exercise significant influence over the investee are accounted for under the equity method of accounting. These investments are measured at cost, less any impairment, plus or minus our share of earnings and losses and are included in Other assets on the Consolidated Balance Sheets. Our share of earnings and losses are recorded in Other income (expense), net on the Consolidated Statements of Operations. As of January 31, 2023, and 2022, we had no equity investments accounted for under the equity method. |
Non-Marketable Equity Investments Measured Using the Measurement Alternative | Non-Marketable Equity Investments Measured Using the Measurement AlternativeNon-marketable equity investments measured using the measurement alternative include investments in privately held companies without readily determinable fair values in which we do not own a controlling interest or exercise significant influence. These investments are recorded at cost and are adjusted for observable transactions for same or similar securities of the same issuer or impairment events. These investments are included in Other assets on the Consolidated Balance Sheets. Additionally, we assess our non-marketable equity investments quarterly for impairment. Adjustments and impairments are recorded in Other income (expense), net on the Consolidated Statements of Operations. |
Trade and Other Receivables | Trade and Other Receivables Trade and other receivables are primarily comprised of trade receivables that are recorded at the invoice amount, net of an allowance for credit losses. We assess our allowance for credit losses on trade receivables by taking into consideration forecasts of future economic conditions, information about past events, such as our historical trend of write-offs, and customer-specific circumstances, such as bankruptcies and disputes. The allowance for credit losses on trade receivables is recorded in operating expenses on the Consolidated Statements of Operations. Other receivables represent unbilled receivables related to subscription and professional services contracts. |
Derivatives Financial Instruments and Hedging Activities | Derivative Financial Instruments and Hedging Activities We use derivative financial instruments to manage foreign currency exchange risk. Derivative instruments are measured at fair value and recorded as either an asset or liability on the Consolidated Balance Sheets. Gains and losses resulting from changes in fair value are accounted for depending on the use of the derivative and whether it is designated and qualifies for hedge accounting. For derivative instruments designated as cash flow hedges (“cash flow hedges”), which we use to hedge a portion of our forecasted foreign currency revenue and expense transactions, the gains or losses are recorded in AOCI on the Consolidated Balance Sheets and subsequently reclassified to the same line item as the hedged transaction on the Consolidated Statements of Operations in the same period that the hedged transaction affects earnings. For derivative instruments not designated as hedging instruments (“non-designated hedges”), which we use to hedge a portion of our net outstanding monetary assets and liabilities, the gains or losses are recorded in Other income (expense), net on the Consolidated Statements of Operations in the period of change. Cash flows from the settlement of forward contracts designated as cash flow hedges and non-designated hedges are classified as operating activities on the Consolidated Statements of Cash Flows. Our foreign currency contracts are classified within Level 2 of the fair value hierarchy because the valuation inputs are based on quoted prices and market observable data of similar instruments in active markets, such as currency spot and forward rates. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation is recorded using the straight-line method over the estimated useful lives of the assets as shown in the table below. Property and equipment are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Computers, equipment, and software 2 - 10 years Buildings 10 - 60 years Leasehold improvements shorter of the related lease term or ten years Furniture, fixtures, and transportation equipment 5 - 12 years Land improvements 15 years |
Business Combinations | Business Combinations We allocate the purchase consideration of acquired companies to tangible and intangible assets acquired and liabilities assumed based on their estimated fair values at the acquisition date, with the excess recorded to goodwill. Our estimates are inherently uncertain and subject to refinement. During the measurement period, which may be up to one year from the acquisition date, we may record adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed, including uncertain tax positions and tax-related valuation allowances, with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Consolidated Statements of Operations. In the event that we acquire a company in which we previously held an equity interest, the difference between the fair value of the shares as of the date of the acquisition and the carrying value of the equity investment is recorded as a non-cash gain or loss and recorded within Other income (expense), net on the Consolidated Statements of Operations. |
Goodwill and Acquisition-Related Intangible Assets | Goodwill and Acquisition-Related Intangible AssetsAcquisition-related intangible assets with finite lives are amortized over their estimated useful lives. Goodwill amounts are not amortized. Acquisition-related intangible assets and goodwill are tested for impairment at least annually, and more frequently upon the occurrence of certain events. |
Leases | Leases We have entered into operating lease agreements for our office space, data centers, and other property and equipment. Operating lease right-of-use assets and operating lease liabilities are recognized at the lease commencement date based on the present value of the lease payments over the lease term. Right-of-use assets also include adjustments related to prepaid or deferred lease payments and lease incentives. As most of our leases do not provide an implicit interest rate, we use our incremental borrowing rate to determine the present value of lease payments. We recognize variable lease costs in the Consolidated Statements of Operations in the period incurred. Variable lease costs include common area maintenance, utilities, real estate taxes, insurance, and other operating costs that are passed on from the lessor. Options to extend or terminate a lease are included in the lease term when it is reasonably certain that we will exercise such options. |
Treasury Stock | Treasury Stock Treasury stock is accounted for using the cost method and recorded as a reduction to Stockholders’ equity on the Consolidated Balance Sheets. Incremental direct costs to purchase treasury stock are included in the cost of the shares acquired. |
Advertising Expenses | Advertising ExpensesAdvertising is expensed as incurred. |
Share-Based Compensation | Share-Based Compensation We measure and recognize compensation expense for share-based awards issued to employees and non-employees, primarily including RSUs and purchases under the Amended and Restated 2012 Employee Stock Purchase Plan (“ESPP”), on the Consolidated Statements of Operations. For RSUs, fair value is based on the closing price of our common stock on the grant date. Compensation expense, net of estimated forfeitures, is recognized on a straight-line basis over the requisite service period. The requisite service period of the awards is generally the same as the vesting period. For shares issued under the ESPP, fair value is estimated using the Black-Scholes option-pricing model. Compensation expense is recognized on a straight-line basis over the offering period. We determine the assumptions for the option-pricing model as follows: • Risk-Free Interest Rate. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the date closest to the grant date for zero-coupon U.S. Treasury notes with maturities approximately equal to the expected term of the ESPP purchase rights. • Expected Term. The expected term represents the period that our ESPP is expected to be outstanding. The expected term for the ESPP approximates the offering period. • Volatility. The volatility is based on a blend of historical volatility and implied volatility of our common stock. Implied volatility is based on market traded options of our common stock. • Dividend Yield. The dividend yield is assumed to be zero as we have not paid and do not expect to pay dividends. |
Income Taxes | Income Taxes We record a provision for income taxes for the anticipated tax consequences of the reported results of operations using the asset and liability method. Under this method, we recognize deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial reporting and tax basis of assets and liabilities, as well as for operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using the tax rates that are expected to apply to taxable income for the years in which those tax assets and liabilities are expected to be realized or settled. We record a valuation allowance to reduce our deferred tax assets to the net amount that we believe is more likely than not to be realized. We recognize tax benefits from uncertain tax positions only if we believe that it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. Although we believe that we have adequately reserved for our uncertain tax positions, we can provide no assurance that the final tax outcome of these matters will not be materially different. We make adjustments to these reserves when facts and circumstances change, such as the closing of a tax audit or the refinement of an estimate. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will affect the provision for income taxes in the period in which such determination is made and could have a material impact on our financial condition and operating results. The provision for income taxes includes the effects of any accruals that we believe are appropriate, as well as the related net interest and penalties. |
Warranties and Indemnification | Warranties and Indemnification Our cloud applications are generally warranted to perform materially in accordance with our online documentation under normal use and circumstances. Additionally, our contracts generally include provisions for indemnifying customers against liabilities if use of our cloud applications infringe a third party’s intellectual property rights. We may also incur liabilities if we breach the security, privacy and/or confidentiality obligations in our contracts. To date, we have not incurred any material costs, and we have not accrued any liabilities in the accompanying consolidated financial statements, as a result of these obligations. In our standard agreements with customers, we commit to defined levels of service availability and performance and, under certain circumstances, permit customers to receive credits in the event that we fail to meet those levels. In the event our failure to meet those levels triggers a termination right for a customer, we permit a terminating customer to receive a refund of prepaid amounts related to unused subscription services. To date, we have not experienced any significant failures to meet defined levels of availability and performance and, as a result, we have not accrued any liabilities related to these agreements on the consolidated financial statements. |
Foreign Currency Exchange | Foreign Currency ExchangeThe functional currency for certain of our foreign subsidiaries is the U.S. dollar, while others use local currencies. We translate the foreign functional currency financial statements to U.S. dollars for those entities that do not have the U.S. dollar as their functional currency using the exchange rates at the balance sheet date for assets and liabilities, the period average exchange rates for revenues and expenses, and the historical exchange rates for equity transactions. The effects of foreign currency translation adjustments are recorded in AOCI on the Consolidated Balance Sheets. Foreign currency transaction gains and losses are included in Other income (expense), net on the Consolidated Statements of Operations. |
Concentrations of Risk and Significant Customers | Concentrations of Risk and Significant Customers Our financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents, debt securities, and trade and other receivables. Our deposits exceed federally insured limits. No customer individually accounted for more than 10% of trade and other receivables, net as of January 31, 2023, or 2022. No customer individually accounted for more than 10% of total revenues during fiscal 2023, 2022, or 2021. Other than the United States, no country individually accounted for more than 10% of total revenues during fiscal 2023, 2022, or 2021. In order to reduce the risk of down-time of our cloud applications, we have established data centers in various geographic regions. We serve our customers and users from data center facilities operated by third parties, located in the United States, Canada, and Europe. We have internal procedures to restore services in the event of disaster at one of our data center facilities. Even with these procedures for disaster recovery in place, our cloud applications could be significantly interrupted during the implementation of the procedures to restore services. In addition, we rely upon third-party hosted infrastructure partners globally, including AWS, Google LLC, and Microsoft Corporation, to serve customers and operate certain aspects of our services. Given this, any disruption of or interference at our hosted infrastructure partners may impact our operations and our business could be adversely impacted. We are also exposed to concentration of risk in our equity investments portfolio, which consists of marketable equity investments and non-marketable equity investments measured using the measurement alternative. As of January 31, 2023, and 2022, we held one marketable equity investment with a carrying value that was individually greater than 10% of our total equity investments portfolio. |
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements ASU No. 2021-08 In October 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured in accordance with Topic 606, Revenue from Contracts with Customers, as if the acquirer had originated the contracts. Prior to the adoption of the new standard, such assets and liabilities were recognized by the acquirer at fair value on the acquisition date. We early adopted ASU No. 2021-08 on a prospective basis effective February 1, 2022. The adoption had no impact on our consolidated financial statements during fiscal 2023, and any financial impact will be dependent on the magnitude and nature of future business combinations. |
Accounting Standards and Sign_3
Accounting Standards and Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of property and equipment useful lives | Property and equipment are stated at cost less accumulated depreciation. Depreciation is recorded using the straight-line method over the estimated useful lives of the assets as shown in the table below. Property and equipment are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Computers, equipment, and software 2 - 10 years Buildings 10 - 60 years Leasehold improvements shorter of the related lease term or ten years Furniture, fixtures, and transportation equipment 5 - 12 years Land improvements 15 years Property and equipment, net consisted of the following (in thousands): As of January 31, 2023 2022 Computers, equipment, and software $ 1,286,540 $ 1,071,141 Buildings 719,966 691,896 Leasehold improvements 202,101 158,037 Furniture, fixtures, and transportation equipment 90,816 79,723 Land and land improvements 81,083 80,553 Property and equipment, gross 2,380,506 2,081,350 Less accumulated depreciation and amortization (1,179,252) (958,275) Property and equipment, net $ 1,201,254 $ 1,123,075 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Jan. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of debt securities | As of January 31, 2023, debt securities consisted of the following (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value U.S. treasury securities $ 2,455,739 $ 77 $ (6,765) $ 2,449,051 U.S. agency obligations 325,664 — (3,874) 321,790 Corporate bonds 966,801 1,617 (6,715) 961,703 Commercial paper 1,016,641 — (5) 1,016,636 Total debt securities $ 4,764,845 $ 1,694 $ (17,359) $ 4,749,180 Included in Cash and cash equivalents $ 594,864 $ — $ (1) $ 594,863 Included in Marketable securities $ 4,169,980 $ 1,694 $ (17,357) $ 4,154,317 As of January 31, 2022, debt securities consisted of the following (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value U.S. treasury securities $ 843,627 $ 5 $ (1,720) $ 841,912 U.S. agency obligations 232,093 — (1,168) 230,925 Corporate bonds 490,867 — (1,815) 489,052 Commercial paper 969,204 — — 969,204 Total debt securities $ 2,535,791 $ 5 $ (4,703) $ 2,531,093 Included in Cash and cash equivalents $ 525,524 $ — $ (1) $ 525,523 Included in Marketable securities $ 2,010,267 $ 5 $ (4,702) $ 2,005,570 |
Equity investments | Equity investments consisted of the following (in thousands): As of January 31, Consolidated Balance Sheets Location 2023 2022 Money market funds Cash and cash equivalents $ 902,226 $ 607,640 Non-marketable equity investments measured using the measurement alternative Other assets 261,922 256,643 Marketable equity investments Marketable securities 80,766 104,318 Total equity investments $ 1,244,914 $ 968,601 |
Total realized and unrealized gains and losses on equity investments | Total realized and unrealized gains and losses associated with our equity investments consisted of the following (in thousands): Year Ended January 31, 2023 2022 2021 Net realized gains (losses) recognized on equity investments sold (1) $ (741) $ 22,273 $ 1,667 Net unrealized gains (losses) recognized on equity investments held as of the end of the period (26,551) 121,474 18,425 Total net gains (losses) recognized in Other income (expense), net $ (27,292) $ 143,747 $ 20,092 (1) Reflects the difference between the sale proceeds and the carrying value of the equity investments at the beginning of the fiscal year. |
Carrying values of non-marketable equity investments | The carrying values for our non-marketable equity investments are summarized below (in thousands): As of January 31, 2023 2022 Total initial cost $ 206,833 $ 192,694 Cumulative net unrealized gains (losses) 55,089 63,949 Carrying value $ 261,922 $ 256,643 |
Carrying value of marketable equity investments | The carrying values for our marketable equity investments are summarized below (in thousands): As of January 31, 2023 2022 Total initial cost $ 38,449 $ 40,739 Cumulative net unrealized gains (losses) 42,317 63,579 Carrying value $ 80,766 $ 104,318 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jan. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Information about assets and liabilities that are measured at fair value on a recurring basis | The following table presents information about our assets and liabilities that are measured at fair value on a recurring basis and their assigned levels within the valuation hierarchy as of January 31, 2023 (in thousands): Level 1 Level 2 Level 3 Total U.S. treasury securities $ 2,449,051 $ — $ — $ 2,449,051 U.S. agency obligations — 321,790 — 321,790 Corporate bonds — 961,703 — 961,703 Commercial paper — 1,016,636 — 1,016,636 Money market funds 902,226 — — 902,226 Marketable equity investments 80,766 — — 80,766 Foreign currency derivative assets — 64,824 — 64,824 Total assets $ 3,432,043 $ 2,364,953 $ — $ 5,796,996 Foreign currency derivative liabilities $ — $ 33,972 $ — $ 33,972 Total liabilities $ — $ 33,972 $ — $ 33,972 The following table presents information about our assets and liabilities that are measured at fair value on a recurring basis and their assigned levels within the valuation hierarchy as of January 31, 2022 (in thousands): Level 1 Level 2 Level 3 Total U.S. treasury securities $ 841,912 $ — $ — $ 841,912 U.S. agency obligations — 230,925 — 230,925 Corporate bonds — 489,052 — 489,052 Commercial paper — 969,204 — 969,204 Money market funds 607,640 — — 607,640 Marketable equity investments 104,318 — — 104,318 Foreign currency derivative assets — 39,031 — 39,031 Total assets $ 1,553,870 $ 1,728,212 $ — $ 3,282,082 Foreign currency derivative liabilities $ — $ 13,039 $ — $ 13,039 Total liabilities $ — $ 13,039 $ — $ 13,039 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Jan. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Summary of property and equipment, net | Property and equipment are stated at cost less accumulated depreciation. Depreciation is recorded using the straight-line method over the estimated useful lives of the assets as shown in the table below. Property and equipment are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Computers, equipment, and software 2 - 10 years Buildings 10 - 60 years Leasehold improvements shorter of the related lease term or ten years Furniture, fixtures, and transportation equipment 5 - 12 years Land improvements 15 years Property and equipment, net consisted of the following (in thousands): As of January 31, 2023 2022 Computers, equipment, and software $ 1,286,540 $ 1,071,141 Buildings 719,966 691,896 Leasehold improvements 202,101 158,037 Furniture, fixtures, and transportation equipment 90,816 79,723 Land and land improvements 81,083 80,553 Property and equipment, gross 2,380,506 2,081,350 Less accumulated depreciation and amortization (1,179,252) (958,275) Property and equipment, net $ 1,201,254 $ 1,123,075 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Jan. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of acquisition-date fair value of purchase consideration | The acquisition-date fair value of the purchase consideration consisted of the following (in thousands): Cash paid to stockholders and option holders $ 473,029 Transaction costs paid by Workday on behalf of VNDLY 135 Total $ 473,164 The acquisition-date fair value of the purchase consideration consisted of the following (in thousands): Cash paid to stockholders, warrant holders, and vested option holders $ 683,788 Transaction costs paid by Workday on behalf of Peakon 17,960 Total $ 701,748 |
Summary of purchase consideration allocation of assets acquired and liabilities assumed | The purchase consideration allocation, which includes measurement period adjustments, was as follows (in thousands): Cash $ 22,830 Acquisition-related intangible assets 40,000 Goodwill 412,151 Other assets 2,595 Deferred tax liability (2,372) Other liabilities (2,040) Total $ 473,164 Acquisition-related intangible assets $ 170,500 Goodwill 541,611 Other assets 34,639 Deferred tax liability (20,021) Other liabilities (24,981) Total $ 701,748 |
Schedule of finite-lived intangible assets acquired as part of business combination | The fair values and weighted-average useful lives of the acquired intangible assets by category were as follows (in thousands, except years): Estimated Fair Values Weighted-Average Useful Lives (in Years) Developed technology $ 27,000 4 Customer relationships 13,000 13 Total acquisition-related intangible assets $ 40,000 7 The fair values and weighted-average useful lives of the acquired intangible assets by category were as follows (in thousands, except years): Estimated Fair Values Weighted-Average Useful Lives (in Years) Developed technology $ 94,000 5 Customer relationships 72,000 13 Backlog 4,000 3 Trade name 500 1 Total acquisition-related intangible assets $ 170,500 8 |
Acquisition-Related Intangibl_2
Acquisition-Related Intangible Assets, Net (Tables) | 12 Months Ended |
Jan. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of acquisition-related intangible assets | Acquisition-related intangible assets, net consisted of the following (in thousands): As of January 31, 2023 2022 Developed technology $ 342,700 $ 346,300 Customer relationships 311,100 311,100 Backlog 15,000 15,000 Trade name 12,500 12,500 Acquisition-related intangible assets, gross 681,300 684,900 Less accumulated amortization (375,835) (293,898) Acquisition-related intangible assets, net $ 305,465 $ 391,002 |
Schedule of future estimated amortization expense of acquisition-related intangible assets | As of January 31, 2023, our future estimated amortization expense related to acquisition-related intangible assets was as follows (in thousands): Fiscal Period: 2024 $ 74,318 2025 61,663 2026 55,748 2027 31,177 2028 26,944 Thereafter 55,615 Total $ 305,465 Fiscal Period: 2024 $ 3,234 2025 2,751 2026 2,496 2027 2,212 2028 2,016 Thereafter 7,825 Total $ 20,534 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Jan. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of other assets | Other noncurrent assets consisted of the following (in thousands): As of January 31, 2023 2022 Non-marketable equity and other investments $ 263,485 $ 256,759 Prepayments for goods and services 23,466 25,927 Derivative assets 21,757 16,618 Technology patents and other intangible assets, net 20,534 22,792 Net deferred tax assets 12,650 11,642 Deposits 5,819 6,701 Other 13,274 813 Total other assets $ 360,985 $ 341,252 |
Schedule of future estimated amortization expense of technology patents and other intangible assets | As of January 31, 2023, our future estimated amortization expense related to acquisition-related intangible assets was as follows (in thousands): Fiscal Period: 2024 $ 74,318 2025 61,663 2026 55,748 2027 31,177 2028 26,944 Thereafter 55,615 Total $ 305,465 Fiscal Period: 2024 $ 3,234 2025 2,751 2026 2,496 2027 2,212 2028 2,016 Thereafter 7,825 Total $ 20,534 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Jan. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of fair value of outstanding derivative instruments | The fair values of outstanding derivative instruments were as follows (in thousands): Consolidated Balance Sheets Location As of January 31, 2023 2022 Derivative assets: Cash flow hedges Prepaid expenses and other current assets $ 42,968 $ 21,337 Cash flow hedges Other assets 21,757 16,618 Non-designated hedges Prepaid expenses and other current assets 99 1,076 Total derivative assets $ 64,824 $ 39,031 Derivative liabilities: Cash flow hedges Accrued expenses and other current liabilities $ 13,231 $ 7,512 Cash flow hedges Other liabilities 15,496 5,175 Non-designated hedges Accrued expenses and other current liabilities 5,244 336 Non-designated hedges Other liabilities 1 16 Total derivative liabilities $ 33,972 $ 13,039 |
Derivative instruments, gain (loss) | The effect of cash flow hedges on the Consolidated Statements of Operations was as follows (in thousands): Year Ended January 31, Consolidated Statements of Operations Location 2023 2022 2021 Total Gains (losses) related to cash flow hedges Total Gains (losses) related to cash flow hedges Total Gains (losses) related to cash flow hedges Revenues $ 6,215,818 $ 17,380 $ 5,138,798 $ (8,759) $ 4,317,996 $ 18,780 Costs and expenses 6,438,018 (29,149) 5,255,248 — 4,566,595 — Income taxes 106,799 (6,092) (13,191) — 7,297 — Pre-tax gains (losses) associated with cash flow hedges were as follows (in thousands): Consolidated Statements of Operations and Statements of Comprehensive Income (Loss) Locations Year Ended January 31, 2023 2022 2021 Gains (losses) recognized in OCI Net change in unrealized gains (losses) on cash flow hedges $ 39,885 $ 63,494 $ (61,171) Gains (losses) reclassified from AOCI into income (effective portion) Revenues 17,380 (8,759) 18,780 Gains (losses) reclassified from AOCI into income (effective portion) Costs and expenses (29,149) — — Gains (losses) reclassified from AOCI into income (effective portion) Income taxes (6,092) — — Gains (losses) associated with non-designated hedges were as follows (in thousands): Consolidated Statements of Operations Location Year Ended January 31, 2023 2022 2021 Gains (losses) related to non-designated hedges Other income (expense), net $ 9,667 $ 6,664 $ (4,095) |
Offsetting arrangements, assets | As of January 31, 2023, information related to these offsetting arrangements was as follows (in thousands): Gross Amounts of Recognized Assets Gross Amounts Offset on the Consolidated Balance Sheets Net Amounts of Assets Presented on the Consolidated Balance Sheets Gross Amounts Not Offset on the Consolidated Balance Sheets Net Assets Exposed Financial Instruments Cash Collateral Received Derivative assets: Counterparty A $ 15,038 $ — $ 15,038 $ (6,531) $ — $ 8,507 Counterparty B 14,264 — 14,264 (9,293) — 4,971 Counterparty C 3,410 — 3,410 (2,533) — 877 Counterparty D 28,380 — 28,380 (14,466) — 13,914 Counterparty E 3,732 — 3,732 (1,149) — 2,583 Total $ 64,824 $ — $ 64,824 $ (33,972) $ — $ 30,852 |
Offsetting arrangements, liabilities | Gross Amounts of Recognized Liabilities Gross Amounts Offset on the Consolidated Balance Sheets Net Amounts of Liabilities Presented on the Consolidated Balance Sheets Gross Amounts Not Offset on the Consolidated Balance Sheets Net Liabilities Exposed Financial Instruments Cash Collateral Pledged Derivative liabilities: Counterparty A $ 6,531 $ — $ 6,531 $ (6,531) $ — $ — Counterparty B 9,293 — 9,293 (9,293) — — Counterparty C 2,533 — 2,533 (2,533) — — Counterparty D 14,466 — 14,466 (14,466) — — Counterparty E 1,149 — 1,149 (1,149) — — Total $ 33,972 $ — $ 33,972 $ (33,972) $ — $ — |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Jan. 31, 2023 | |
Debt Disclosure [Abstract] | |
Outstanding debt | Outstanding debt consisted of the following (in thousands): As of January 31, 2023 2022 2027 Notes $ 1,000,000 $ — 2029 Notes 750,000 — 2032 Notes 1,250,000 — 2022 Notes — 1,149,817 Term loan under the 2020 Credit Agreement — 693,750 Total principal amount 3,000,000 1,843,567 Less: unamortized debt discount and issuance costs (24,066) (3,770) Net carrying amount 2,975,934 1,839,797 Less: debt, current — (1,222,443) Debt, noncurrent $ 2,975,934 $ 617,354 |
Schedule of contractual repayments and maturities of long-term debt | As of January 31, 2023, the future principal payments for the outstanding debt were as follows (in thousands): Fiscal Period: 2024 $ — 2025 — 2026 — 2027 — 2028 1,000,000 Thereafter 2,000,000 Total principal amount $ 3,000,000 |
Schedule of interest expense related to debt | The following table sets forth total interest expense recognized related to our debt (in thousands): Year Ended January 31, 2023 2022 2021 Contractual interest expense $ 95,265 $ 12,525 $ 15,012 Interest cost related to amortization and write-off of debt discount and issuance costs 6,955 3,988 53,693 Total interest expense $ 102,220 $ 16,513 $ 68,705 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jan. 31, 2023 | |
Leases [Abstract] | |
Components of operating lease expense | The components of operating lease expense were as follows (in thousands): Year Ended January 31, 2023 2022 2021 Operating lease cost $ 99,084 $ 93,045 $ 94,183 Short-term lease cost 3,876 6,638 14,544 Variable lease cost 44,841 25,743 17,708 Total operating lease cost $ 147,801 $ 125,426 $ 126,435 |
Supplemental cash flow information | Supplemental cash flow information related to our operating leases was as follows (in thousands): Year Ended January 31, 2023 2022 2021 Cash paid for operating lease liabilities $ 93,868 $ 91,402 $ 87,450 Operating lease right-of-use assets obtained in exchange for new operating lease liabilities 95,702 54,846 205,103 Other information related to our operating leases was as follows: As of January 31, 2023 2022 Weighted average remaining lease term (in years) 5 5 Weighted average discount rate 2.79 % 2.35 % |
Maturities of operating lease liabilities | As of January 31, 2023, maturities of operating lease liabilities were as follows (in thousands): Fiscal Period: 2024 $ 97,387 2025 78,696 2026 49,103 2027 28,333 2028 19,808 Thereafter 27,494 Total lease payments 300,821 Less imputed interest (27,679) Total operating lease liabilities $ 273,142 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jan. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future payments under purchase obligations | Future payments under purchase obligations with a remaining term in excess of one year as of January 31, 2023, were as follows (in thousands): Third-Party Hosted Infrastructure Platform Obligations Other Purchase Obligations Fiscal Period: 2024 $ 40,000 $ 115,386 2025 72,235 71,281 2026 165,391 65,895 2027 120,000 39,427 2028 150,000 44,889 Thereafter — 35,395 Total $ 547,626 $ 372,273 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Jan. 31, 2023 | |
Equity [Abstract] | |
Summary of information related to restricted stock units activity | RSU activity during fiscal 2023 was as follows (in thousands, except per share data): Number of Shares Weighted-Average Grant Date Fair Value Balance as of January 31, 2022 11,808 $ 209.12 RSUs granted 9,184 200.98 RSUs vested (5,466) 203.51 RSUs forfeited (1,427) 205.26 Balance as of January 31, 2023 14,099 206.38 |
Summary of stock option activity | Stock option activity during fiscal 2023 was as follows (in thousands, except aggregate intrinsic value which is reflected in millions and per share data): Outstanding Stock Options Weighted-Average Exercise Price Aggregate Intrinsic Value Balance as of January 31, 2022 387 $ 20.09 $ 90 Stock options exercised (228) 15.66 Stock options canceled (44) 16.20 Balance as of January 31, 2023 115 30.36 17 Vested and expected to vest as of January 31, 2023 115 30.36 17 Exercisable as of January 31, 2023 115 30.34 17 |
Assumptions used for periods presented, Employee Stock Purchase Plan (ESPP) | The fair value of stock purchase rights granted under the ESPP was estimated using the following assumptions: Year Ended January 31, 2023 2022 2021 Expected volatility 46.2% - 48.5% 30.4% - 41.5% 36.9% - 51.0% Expected term (in years) 0.5 0.5 0.5 Risk-free interest rate 1.63% - 4.65% 0.04% - 0.10% 0.10% - 1.62% Dividend yield —% —% —% Grant date fair value per share $156.56 - $169.48 $225.70 - $260.86 $146.14 - $191.85 |
Other Income (Expense), Net (Ta
Other Income (Expense), Net (Tables) | 12 Months Ended |
Jan. 31, 2023 | |
Other Income and Expenses [Abstract] | |
Schedule of other income (expense), net | Other income (expense), net consisted of the following (in thousands): Year Ended January 31, 2023 2022 2021 Interest income $ 97,709 $ 5,575 $ 18,788 Interest expense (1) (102,353) (16,602) (68,806) Other (2) (33,106) 143,659 23,483 Total other income (expense), net $ (37,750) $ 132,632 $ (26,535) (1) Interest expense primarily includes the contractual interest expense of our debt obligations, and the related non-cash interest expense attributable to amortization of the debt discount and issuance costs. For further information, see Note 11, Debt . (2) Other primarily includes the net gains (losses) from our equity investments. For further information, see Note 3, Investments |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Components of loss before provision for (benefit from) income taxes | The components of income (loss) before provision for (benefit from) income taxes were as follows (in thousands): Year Ended January 31, 2023 2022 2021 Domestic $ (59,376) $ 309,061 $ (140,352) Foreign (200,574) (292,879) (134,782) Income (loss) before provision for (benefit from) income taxes $ (259,950) $ 16,182 $ (275,134) |
Summary of provision for (benefit from) income taxes | The provision for (benefit from) income taxes consisted of the following (in thousands): Year Ended January 31, 2023 2022 2021 Current: Federal $ 209 $ — $ — State 14,316 763 1,524 Foreign 96,722 7,300 9,248 Total 111,247 8,063 10,772 Deferred: Federal 623 (1,953) (81) State 667 (721) (177) Foreign (5,738) (18,580) (3,217) Total (4,448) (21,254) (3,475) Provision for (benefit from) income taxes $ 106,799 $ (13,191) $ 7,297 |
Reconciliation of income taxes computed at federal statutory income tax rate and provision for (benefit from) income taxes | The items accounting for the difference between income taxes computed at the federal statutory income tax rate and the provision for (benefit from) income taxes consisted of the following: Year Ended January 31, 2023 2022 2021 Federal statutory rate 21.0 % 21.0 % 21.0 % Effect of: Foreign income at other than U.S. rates (44.7) % 321.0 % (13.1) % Intercompany transactions 3.5 % (158.2) % 1.0 % Research tax credits 26.5 % (447.7) % 26.6 % State taxes, net of federal benefit (4.7) % (0.7) % (0.5) % Changes in valuation allowance (14.9) % 558.5 % (56.3) % Share-based compensation (26.5) % (365.4) % 19.0 % Permanent difference (0.9) % 4.6 % (0.3) % Nontaxable gain on investment — % (15.7) % 0.0 % Other (0.4) % 1.0 % (0.1) % Total (41.1) % (81.6) % (2.7) % |
Schedule of deferred tax assets and liabilities | Significant components of our deferred tax assets and liabilities were as follows (in thousands): As of January 31, 2023 2022 Deferred tax assets: Unearned revenue $ 10,590 $ 16,877 Other reserves and accruals 60,419 28,629 Tax attributes carryforward 1,574,849 1,790,396 Capitalized research and development expense 255,384 — Property and equipment 29,833 23,977 Share-based compensation 75,373 71,191 Intangibles 503,256 422,985 Operating lease liabilities 63,278 60,714 Other 27,364 39,373 Total deferred tax assets 2,600,346 2,454,142 Valuation allowance (2,358,496) (2,242,901) Deferred tax assets, net of valuation allowance 241,850 211,241 Deferred tax liabilities: Deferred commissions (126,618) (102,682) Operating lease right-of-use assets (57,419) (57,001) Other (46,695) (43,990) Total deferred tax liabilities (230,732) (203,673) Net deferred tax assets $ 11,118 $ 7,568 |
Summary of reconciliation of gross unrecognized tax benefit | A reconciliation of the gross unrecognized tax benefit is as follows (in thousands): Year Ended January 31, 2023 2022 2021 Unrecognized tax benefits at the beginning of the period $ 173,929 $ 159,862 $ 143,621 Additions for tax positions taken in prior years 742 572 4,640 Reductions for tax positions taken in prior years — (1,030) (2,347) Additions for tax positions related to the current year 21,207 14,918 15,158 Reductions related to a lapse of applicable statute of limitations (84) — (807) Reductions related to settlements — (393) (403) Unrecognized tax benefits at the end of the period $ 195,794 $ 173,929 $ 159,862 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 12 Months Ended |
Jan. 31, 2023 | |
Earnings Per Share [Abstract] | |
Summary of calculation of basic and diluted net income (loss) per share | The following table presents the calculation of basic and diluted net income (loss) per share (in thousands, except per share data): Year Ended January 31, 2023 2022 2021 Class A Class B Class A Class B Class A Class B Net income (loss) per share, basic: Numerator: Net income (loss) $ (287,570) $ (79,179) $ 22,556 $ 6,817 $ (210,637) $ (71,794) Denominator: Weighted-average shares outstanding, basic 199,805 55,014 189,864 57,385 176,758 60,261 Net income (loss) per share, basic $ (1.44) $ (1.44) $ 0.12 $ 0.12 $ (1.19) $ (1.19) Net income (loss) per share, diluted: Numerator: Net income (loss) $ (287,570) $ (79,179) $ 22,556 $ 6,817 $ (210,637) $ (71,794) Reallocation of net income as a result of conversion of Class B to Class A common stock — — 6,817 — — — Reallocation of net income to Class B common stock — — — (182) — — Net income (loss) for diluted calculation (287,570) (79,179) 29,373 6,635 (210,637) (71,794) Denominator: Weighted-average shares outstanding, basic 199,805 55,014 189,864 57,385 176,758 60,261 Conversion of Class B to Class A common stock — — 57,385 — — — Dilutive effect of share-based awards — — 5,549 — — — Dilutive effect of warrants related to the issuance of convertible senior notes — — 1,234 — — — Weighted-average shares outstanding, diluted 199,805 55,014 254,032 57,385 176,758 60,261 Net income (loss) per share, diluted $ (1.44) $ (1.44) $ 0.12 $ 0.12 $ (1.19) $ (1.19) |
Anti-dilutive securities excluded from the diluted calculation | The computation of diluted net income (loss) per share does not include the effect of the following potentially outstanding weighted-average shares of common stock. The effects of these potentially outstanding shares were not included in the calculation of diluted net income (loss) per share because the effect would have been anti-dilutive (in thousands): Year Ended January 31, 2023 2022 2021 Shares related to outstanding share-based awards 15,454 1,436 15,366 Shares related to the convertible senior notes 5,182 7,817 9,205 Shares subject to warrants related to the issuance of convertible senior notes 7,762 — 10,392 Total 28,398 9,253 34,963 |
Geographic Information (Tables)
Geographic Information (Tables) | 12 Months Ended |
Jan. 31, 2023 | |
Segment Reporting [Abstract] | |
Summary of revenues by geographic area | The following table sets forth revenues by geographic area (in thousands): Year Ended January 31, 2023 2022 2021 United States $ 4,682,285 $ 3,845,412 $ 3,249,127 Other countries 1,533,533 1,293,386 1,068,869 Total revenues $ 6,215,818 $ 5,138,798 $ 4,317,996 |
Long-lived assets by geographic areas | Aggregate Property and equipment, net and Operating lease right-of-use assets by geographic area was as follows (in thousands): As of January 31, 2023 2022 United States $ 1,206,486 $ 1,174,371 Ireland 159,337 117,049 Other countries 84,709 79,463 Total long-lived assets $ 1,450,532 $ 1,370,883 |
Overview and Basis of Present_2
Overview and Basis of Presentation (Detail) | 12 Months Ended |
Jan. 31, 2023 segment | |
Property, Plant and Equipment [Line Items] | |
Number of operating segments | 1 |
Data Center Equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life (years) | 3 years |
Data Center Equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life (years) | 5 years |
Accounting Standards and Sign_4
Accounting Standards and Significant Accounting Policies - Narrative (Detail) $ in Millions | 12 Months Ended | ||
Jan. 31, 2023 USD ($) variableInterestEntity | Jan. 31, 2022 USD ($) | Jan. 31, 2021 USD ($) | |
Accounting Policies [Line Items] | |||
Number of VIE's that the Company is primary beneficiary | variableInterestEntity | 0 | ||
Amortization period, deferred commissions (years) | 5 years | ||
Period to pay portion of total arrangement fee, days | 30 days | ||
Advertising expense | $ | $ 172 | $ 131 | $ 85 |
ESPP | |||
Accounting Policies [Line Items] | |||
Dividend yield (percentage) | 0% | 0% | 0% |
Minimum | Subscription services | |||
Accounting Policies [Line Items] | |||
Subscriptions contract period, years | 3 years |
Accounting Standards and Sign_5
Accounting Standards and Significant Accounting Policies - Summary of Property and Equipment Useful Lives (Details) | 12 Months Ended |
Jan. 31, 2023 | |
Computers, equipment, and software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life (years) | 2 years |
Computers, equipment, and software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life (years) | 10 years |
Buildings | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life (years) | 10 years |
Buildings | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life (years) | 60 years |
Leasehold improvements | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life (years) | 10 years |
Furniture, fixtures, and transportation equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life (years) | 5 years |
Furniture, fixtures, and transportation equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life (years) | 12 years |
Land improvements | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life (years) | 15 years |
Investments - Summary of Market
Investments - Summary of Marketable Securities (Detail) - USD ($) $ in Thousands | Jan. 31, 2023 | Jan. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 4,764,845 | $ 2,535,791 |
Unrealized Gains | 1,694 | 5 |
Unrealized Losses | (17,359) | (4,703) |
Aggregate Fair Value | 4,749,180 | 2,531,093 |
Included in Cash and cash equivalents | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 594,864 | 525,524 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (1) | (1) |
Aggregate Fair Value | 594,863 | 525,523 |
Included in Marketable securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 4,169,980 | 2,010,267 |
Unrealized Gains | 1,694 | 5 |
Unrealized Losses | (17,357) | (4,702) |
Aggregate Fair Value | 4,154,317 | 2,005,570 |
U.S. treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,455,739 | 843,627 |
Unrealized Gains | 77 | 5 |
Unrealized Losses | (6,765) | (1,720) |
Aggregate Fair Value | 2,449,051 | 841,912 |
U.S. agency obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 325,664 | 232,093 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (3,874) | (1,168) |
Aggregate Fair Value | 321,790 | 230,925 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 966,801 | 490,867 |
Unrealized Gains | 1,617 | 0 |
Unrealized Losses | (6,715) | (1,815) |
Aggregate Fair Value | 961,703 | 489,052 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,016,641 | 969,204 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (5) | 0 |
Aggregate Fair Value | $ 1,016,636 | $ 969,204 |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Debt and Equity Securities, FV-NI [Line Items] | |||
Unrealized loss of debt securities, available-for-sale | $ 3,100,000,000 | $ 1,500,000,000 | |
Credit losses on debt securities | 0 | 0 | $ 0 |
Proceeds from sale of debt securities, available-for-sale | 98,000,000 | 162,000,000 | 11,000,000 |
Equity securities without readily determinable fair value, upward price adjustment, annual amount | 8,000,000 | 58,000,000 | 9,000,000 |
Impairment loss on non-marketable equity securities | 16,000,000 | ||
Non-cash gain on the sale of a non-marketable equity investment | 0 | 7,000,000 | |
Proceeds from sale of available-for-sale securities, equity | 6,000,000 | 37,000,000 | 0 |
Non-cash loss on the sale of a non-marketable equity investment | $ 18,000,000 | ||
Non-cash gain on the sale of a non-marketable equity investment | 67,000,000 | $ 14,000,000 | |
Zimit, Inc. | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Non-cash gain on the sale of a non-marketable equity investment | $ 12,000,000 |
Investments - Equity Investment
Investments - Equity Investments (Details) - USD ($) $ in Thousands | Jan. 31, 2023 | Jan. 31, 2022 |
Schedule of Equity Method Investments [Line Items] | ||
Non-marketable equity investments measured using the measurement alternative | $ 261,922 | $ 256,643 |
Total equity investments | 1,244,914 | 968,601 |
Cash and cash equivalents | ||
Schedule of Equity Method Investments [Line Items] | ||
Marketable equity investments | 902,226 | 607,640 |
Other assets | ||
Schedule of Equity Method Investments [Line Items] | ||
Non-marketable equity investments measured using the measurement alternative | 261,922 | 256,643 |
Marketable securities | ||
Schedule of Equity Method Investments [Line Items] | ||
Marketable equity investments | $ 80,766 | $ 104,318 |
Investments - Realized and Unre
Investments - Realized and Unrealized Gains (Losses) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |||
Net realized gains (losses) recognized on equity investments sold | $ (741) | $ 22,273 | $ 1,667 |
Net unrealized gains (losses) recognized on equity investments held as of the end of the period | (26,551) | 121,474 | 18,425 |
Total net gains (losses) recognized in Other income (expense), net | $ (27,292) | $ 143,747 | $ 20,092 |
Investments - Schedule of Non-M
Investments - Schedule of Non-Marketable Equity Investments (Details) - USD ($) $ in Thousands | Jan. 31, 2023 | Jan. 31, 2022 |
Investments, Debt and Equity Securities [Abstract] | ||
Total initial cost | $ 206,833 | $ 192,694 |
Cumulative net unrealized gains (losses) | 55,089 | 63,949 |
Carrying value | $ 261,922 | $ 256,643 |
Investments - Schedule of Marke
Investments - Schedule of Marketable Equity Investments (Details) - USD ($) $ in Thousands | Jan. 31, 2023 | Jan. 31, 2022 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Total initial cost | $ 38,449 | $ 40,739 |
Cumulative net unrealized gains (losses) | 42,317 | 63,579 |
Included in Marketable securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Carrying value | $ 80,766 | $ 104,318 |
Fair Value Measurements - Infor
Fair Value Measurements - Information about Assets and Liabilities that are Measured at Fair Value on a Recurring Basis (Detail) - USD ($) $ in Thousands | Jan. 31, 2023 | Jan. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | $ 4,749,180 | $ 2,531,093 |
Foreign currency derivative assets | 64,824 | |
Foreign currency derivative liabilities | 33,972 | |
U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 2,449,051 | 841,912 |
U.S. agency obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 321,790 | 230,925 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 961,703 | 489,052 |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 1,016,636 | 969,204 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable equity investments | 80,766 | 104,318 |
Foreign currency derivative assets | 64,824 | 39,031 |
Total assets | 5,796,996 | 3,282,082 |
Foreign currency derivative liabilities | 33,972 | 13,039 |
Total liabilities | 33,972 | 13,039 |
Recurring | U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 2,449,051 | 841,912 |
Recurring | U.S. agency obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 321,790 | 230,925 |
Recurring | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 961,703 | 489,052 |
Recurring | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 1,016,636 | 969,204 |
Recurring | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 902,226 | 607,640 |
Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable equity investments | 80,766 | 104,318 |
Foreign currency derivative assets | 0 | 0 |
Total assets | 3,432,043 | 1,553,870 |
Foreign currency derivative liabilities | 0 | 0 |
Total liabilities | 0 | 0 |
Recurring | Level 1 | U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 2,449,051 | 841,912 |
Recurring | Level 1 | U.S. agency obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 0 | 0 |
Recurring | Level 1 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 0 | 0 |
Recurring | Level 1 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 0 | 0 |
Recurring | Level 1 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 902,226 | 607,640 |
Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable equity investments | 0 | 0 |
Foreign currency derivative assets | 64,824 | 39,031 |
Total assets | 2,364,953 | 1,728,212 |
Foreign currency derivative liabilities | 33,972 | 13,039 |
Total liabilities | 33,972 | 13,039 |
Recurring | Level 2 | U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 0 | 0 |
Recurring | Level 2 | U.S. agency obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 321,790 | 230,925 |
Recurring | Level 2 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 961,703 | 489,052 |
Recurring | Level 2 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 1,016,636 | 969,204 |
Recurring | Level 2 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 0 | 0 |
Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable equity investments | 0 | 0 |
Foreign currency derivative assets | 0 | 0 |
Total assets | 0 | 0 |
Foreign currency derivative liabilities | 0 | 0 |
Total liabilities | 0 | 0 |
Recurring | Level 3 | U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 0 | 0 |
Recurring | Level 3 | U.S. agency obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 0 | 0 |
Recurring | Level 3 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 0 | 0 |
Recurring | Level 3 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 0 | 0 |
Recurring | Level 3 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | $ 0 | $ 0 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Thousands | Jan. 31, 2023 | Jan. 31, 2022 | Dec. 31, 2020 | Sep. 30, 2017 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Carrying value of loan | $ 2,975,934 | $ 1,839,797 | ||
2022 Notes | Convertible Debt | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Debt instrument, face amount | $ 1,150,000 | |||
Contractual interest rate (in percentage) | 0.25% | |||
Term Loan | Term Loan | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Debt instrument, face amount | $ 750,000 |
Deferred Costs (Detail)
Deferred Costs (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |||
Deferred sales commissions | $ 612,000 | $ 494,000 | |
Amortization of deferred costs | 174,611 | 138,797 | $ 112,647 |
Capitalized contract cost, impairment loss | $ 0 | $ 0 | $ 0 |
Property and Equipment, Net - S
Property and Equipment, Net - Summary of Property and Equipment, Net (Detail) - USD ($) $ in Thousands | Jan. 31, 2023 | Jan. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 2,380,506 | $ 2,081,350 |
Less accumulated depreciation and amortization | (1,179,252) | (958,275) |
Property and equipment, net | 1,201,254 | 1,123,075 |
Computers, equipment, and software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,286,540 | 1,071,141 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 719,966 | 691,896 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 202,101 | 158,037 |
Furniture, fixtures, and transportation equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 90,816 | 79,723 |
Land and land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 81,083 | $ 80,553 |
Property and Equipment, Net - N
Property and Equipment, Net - Narrative (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Apr. 30, 2021 | Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation expense | $ 275 | $ 263 | $ 231 | |
Affiliated Entity | Air Transportation Equipment | ||||
Property, Plant and Equipment [Line Items] | ||||
Purchase price of aircraft | $ 24 | |||
Affiliated Entity | Pleasanton, California | ||||
Property, Plant and Equipment [Line Items] | ||||
Leased property purchase | $ 173 | |||
Expenses from transactions with related party | 2 | $ 2 | ||
Carrying value of properties purchased | 158 | |||
Difference between purchase price and carrying value of lease liability recorded as reduction to carrying value of properties purchased | $ 15 |
Business Combinations - Conside
Business Combinations - Consideration Transferred (Details) - USD ($) $ in Thousands | Dec. 21, 2021 | Mar. 09, 2021 |
VNDLY | ||
Business Acquisition [Line Items] | ||
Cash paid to stockholders, warrant holders, and vested option holders | $ 473,029 | |
Transaction costs paid by Workday on behalf of acquired company | 135 | |
Total | $ 473,164 | |
Peakon ApS | ||
Business Acquisition [Line Items] | ||
Cash paid to stockholders, warrant holders, and vested option holders | $ 683,788 | |
Transaction costs paid by Workday on behalf of acquired company | 17,960 | |
Total | $ 701,748 |
Business Combinations - Narrati
Business Combinations - Narrative (Details) - USD ($) shares in Thousands, $ in Thousands | Dec. 21, 2021 | Sep. 28, 2021 | Mar. 09, 2021 | Jan. 31, 2023 | Jan. 31, 2022 | Sep. 27, 2021 |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 2,840,044 | $ 2,840,044 | ||||
Carrying value | $ 261,922 | $ 256,643 | ||||
VNDLY | ||||||
Business Acquisition [Line Items] | ||||||
Cash paid to stockholders, warrant holders, and vested option holders | $ 473,029 | |||||
Increase in finite-lived intangible assets acquired | $ 40,000 | |||||
Estimated useful life (in years) | 7 years | |||||
Goodwill | $ 412,151 | |||||
Consideration paid for acquisition | $ 473,164 | |||||
VNDLY | Class A | ||||||
Business Acquisition [Line Items] | ||||||
Shares issued to employees upon acquisition (in shares) | 152 | |||||
First percentage of shares issued | 50% | |||||
Second percentage of shares issued | 50% | |||||
Zimit, Inc. | ||||||
Business Acquisition [Line Items] | ||||||
Consideration transferred, including equity interest in acquiree held prior to combination | $ 76,000 | |||||
Cash paid to stockholders, warrant holders, and vested option holders | 62,000 | |||||
Equity interest in aquiree, fair value | 14,000 | |||||
Goodwill | 67,000 | |||||
Carrying value | $ 2,000 | |||||
Non-cash gain recognized | 12,000 | |||||
Peakon ApS | ||||||
Business Acquisition [Line Items] | ||||||
Cash paid to stockholders, warrant holders, and vested option holders | $ 683,788 | |||||
Increase in finite-lived intangible assets acquired | $ 170,500 | |||||
Estimated useful life (in years) | 8 years | |||||
Goodwill | $ 541,611 | |||||
Consideration paid for acquisition | $ 701,748 | |||||
Peakon ApS | Restricted Stock | ||||||
Business Acquisition [Line Items] | ||||||
Non-option equity instruments granted (in shares) | 82 | |||||
Developed technology | VNDLY | ||||||
Business Acquisition [Line Items] | ||||||
Increase in finite-lived intangible assets acquired | $ 27,000 | |||||
Estimated useful life (in years) | 4 years | |||||
Developed technology | Zimit, Inc. | ||||||
Business Acquisition [Line Items] | ||||||
Increase in finite-lived intangible assets acquired | $ 7,000 | |||||
Estimated useful life (in years) | 4 years | |||||
Developed technology | Peakon ApS | ||||||
Business Acquisition [Line Items] | ||||||
Increase in finite-lived intangible assets acquired | $ 94,000 | |||||
Estimated useful life (in years) | 5 years | |||||
Customer relationships | VNDLY | ||||||
Business Acquisition [Line Items] | ||||||
Increase in finite-lived intangible assets acquired | $ 13,000 | |||||
Estimated useful life (in years) | 13 years | |||||
Customer relationships | Zimit, Inc. | ||||||
Business Acquisition [Line Items] | ||||||
Increase in finite-lived intangible assets acquired | $ 3,000 | |||||
Estimated useful life (in years) | 13 years | |||||
Customer relationships | Peakon ApS | ||||||
Business Acquisition [Line Items] | ||||||
Increase in finite-lived intangible assets acquired | $ 72,000 | |||||
Estimated useful life (in years) | 13 years |
Business Combinations - Assets
Business Combinations - Assets and Liabilities Assumed (Details) - USD ($) $ in Thousands | Jan. 31, 2023 | Jan. 31, 2022 | Dec. 21, 2021 | Mar. 09, 2021 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 2,840,044 | $ 2,840,044 | ||
VNDLY | ||||
Business Acquisition [Line Items] | ||||
Cash | $ 22,830 | |||
Acquisition-related intangible assets | 40,000 | |||
Goodwill | 412,151 | |||
Other assets | 2,595 | |||
Deferred tax liability | (2,372) | |||
Other liabilities | (2,040) | |||
Total | $ 473,164 | |||
Peakon ApS | ||||
Business Acquisition [Line Items] | ||||
Acquisition-related intangible assets | $ 170,500 | |||
Goodwill | 541,611 | |||
Other assets | 34,639 | |||
Deferred tax liability | (20,021) | |||
Other liabilities | (24,981) | |||
Total | $ 701,748 |
Business Combinations - Intangi
Business Combinations - Intangible Assets Acquired (Details) - USD ($) $ in Thousands | Dec. 21, 2021 | Mar. 09, 2021 |
VNDLY | ||
Business Acquisition [Line Items] | ||
Estimated Fair Values | $ 40,000 | |
Weighted-Average Useful Lives (in Years) | 7 years | |
VNDLY | Developed technology | ||
Business Acquisition [Line Items] | ||
Estimated Fair Values | $ 27,000 | |
Weighted-Average Useful Lives (in Years) | 4 years | |
VNDLY | Customer relationships | ||
Business Acquisition [Line Items] | ||
Estimated Fair Values | $ 13,000 | |
Weighted-Average Useful Lives (in Years) | 13 years | |
Peakon ApS | ||
Business Acquisition [Line Items] | ||
Estimated Fair Values | $ 170,500 | |
Weighted-Average Useful Lives (in Years) | 8 years | |
Peakon ApS | Developed technology | ||
Business Acquisition [Line Items] | ||
Estimated Fair Values | $ 94,000 | |
Weighted-Average Useful Lives (in Years) | 5 years | |
Peakon ApS | Customer relationships | ||
Business Acquisition [Line Items] | ||
Estimated Fair Values | $ 72,000 | |
Weighted-Average Useful Lives (in Years) | 13 years | |
Peakon ApS | Backlog | ||
Business Acquisition [Line Items] | ||
Estimated Fair Values | $ 4,000 | |
Weighted-Average Useful Lives (in Years) | 3 years | |
Peakon ApS | Trade name | ||
Business Acquisition [Line Items] | ||
Estimated Fair Values | $ 500 | |
Weighted-Average Useful Lives (in Years) | 1 year |
Acquisition-Related Intangibl_3
Acquisition-Related Intangible Assets, Net - Schedule of Acquired Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Acquired Intangible Assets | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, gross | $ 681,300 | $ 684,900 | |
Less accumulated amortization | (375,835) | (293,898) | |
Total | 305,465 | 391,002 | |
Amortization of acquisition-related intangible assets | 86,000 | 78,000 | $ 60,000 |
Developed technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, gross | 342,700 | 346,300 | |
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, gross | 311,100 | 311,100 | |
Backlog | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, gross | 15,000 | 15,000 | |
Trade name | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, gross | $ 12,500 | $ 12,500 |
Acquisition-Related Intangibl_4
Acquisition-Related Intangible Assets, Net - Schedule of Future Amortization Expense (Detail) - Acquired Intangible Assets - USD ($) $ in Thousands | Jan. 31, 2023 | Jan. 31, 2022 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Rolling Maturity [Abstract] | ||
2024 | $ 74,318 | |
2025 | 61,663 | |
2026 | 55,748 | |
2027 | 31,177 | |
2028 | 26,944 | |
Thereafter | 55,615 | |
Total | $ 305,465 | $ 391,002 |
Other Assets - Schedule of Othe
Other Assets - Schedule of Other Assets (Detail) - USD ($) $ in Thousands | Jan. 31, 2023 | Jan. 31, 2022 |
Other Assets [Line Items] | ||
Non-marketable equity and other investments | $ 263,485 | $ 256,759 |
Prepayments for goods and services | 23,466 | 25,927 |
Derivative assets | 21,757 | 16,618 |
Net deferred tax assets | 12,650 | 11,642 |
Deposits | 5,819 | 6,701 |
Other | 13,274 | 813 |
Total | 360,985 | 341,252 |
Patented Technology and Other Intangible Assets, Net | ||
Other Assets [Line Items] | ||
Technology patents and other intangible assets, net | $ 20,534 | $ 22,792 |
Other Assets - Summary of Futur
Other Assets - Summary of Future Estimated Amortization Expense Related to Technology Patents and Other Intangible Assets (Detail) - Patented Technology and Other Intangible Assets, Net - USD ($) $ in Thousands | Jan. 31, 2023 | Jan. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
2024 | $ 3,234 | |
2025 | 2,751 | |
2026 | 2,496 | |
2027 | 2,212 | |
2028 | 2,016 | |
Thereafter | 7,825 | |
Total | $ 20,534 | $ 22,792 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 31, 2023 | Jan. 31, 2022 | |
Derivative [Line Items] | ||
Net gains on cash flow hedges estimated to be reclassified into income within the next 12 months | $ 64 | |
Non-designated hedges | Long | ||
Derivative [Line Items] | ||
Derivative, notional amount | 235 | $ 217 |
Non-designated hedges | Short | ||
Derivative [Line Items] | ||
Derivative, notional amount | 2 | 8 |
Cash flow hedges | Cash flow hedges | Long | ||
Derivative [Line Items] | ||
Derivative, notional amount | 1,700 | 1,400 |
Cash flow hedges | Cash flow hedges | Short | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 324 | $ 355 |
Cash flow hedges | Cash flow hedges | Maximum | ||
Derivative [Line Items] | ||
Derivative, remaining maturity | 48 months |
Derivative Instruments - Fair V
Derivative Instruments - Fair Values of Outstanding Derivative Instruments (Details) - USD ($) $ in Thousands | Jan. 31, 2023 | Jan. 31, 2022 |
Derivatives, Fair Value [Line Items] | ||
Derivative assets: | $ 64,824 | $ 39,031 |
Derivative liabilities: | $ 33,972 | $ 13,039 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other assets, Prepaid expenses and other current assets | Other assets, Prepaid expenses and other current assets |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Accrued expenses and other current liabilities, Other liabilities | Accrued expenses and other current liabilities, Other liabilities |
Non-designated hedges | Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets: | $ 99 | $ 1,076 |
Non-designated hedges | Accrued expenses and other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities: | 5,244 | 336 |
Non-designated hedges | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities: | 1 | 16 |
Cash flow hedges | Cash flow hedges | Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets: | 42,968 | 21,337 |
Cash flow hedges | Cash flow hedges | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets: | 21,757 | 16,618 |
Cash flow hedges | Cash flow hedges | Accrued expenses and other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities: | 13,231 | 7,512 |
Cash flow hedges | Cash flow hedges | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities: | $ 15,496 | $ 5,175 |
Derivative Instruments - Schedu
Derivative Instruments - Schedule of Cash Flow Hedges On The Consolidated Statements of Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Revenues | $ 6,215,818 | $ 5,138,798 | $ 4,317,996 |
Costs and expenses | 6,438,018 | 5,255,248 | 4,566,595 |
Income taxes | 106,799 | (13,191) | 7,297 |
Gains (losses) related to cash flow hedges | (6,092) | 0 | 0 |
Revenues | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) related to cash flow hedges | 17,380 | (8,759) | 18,780 |
Costs and expenses | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) related to cash flow hedges | $ (29,149) | $ 0 | $ 0 |
Derivative Instruments - Gains
Derivative Instruments - Gains (Losses) Of Cash And Non-Designated Hedges (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) recognized in OCI | $ 39,885 | $ 63,494 | $ (61,171) |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, Tax | (6,092) | 0 | 0 |
Revenues | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) reclassified from AOCI into income (effective portion) | 17,380 | (8,759) | 18,780 |
Costs and expenses | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) reclassified from AOCI into income (effective portion) | (29,149) | 0 | 0 |
Other income (expense), net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) related to non-designated hedges | $ 9,667 | $ 6,664 | $ (4,095) |
Derivative Instruments - Offset
Derivative Instruments - Offsetting Assets (Details) - USD ($) $ in Thousands | Jan. 31, 2023 | Jan. 31, 2022 |
Offsetting Assets [Line Items] | ||
Gross Amounts of Recognized Assets | $ 64,824 | $ 39,031 |
Gross Amounts Offset on the Consolidated Balance Sheets | 0 | |
Net Amounts of Assets Presented on the Consolidated Balance Sheets | 64,824 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets, Financial Instruments | (33,972) | |
Gross Amounts Not Offset in the Consolidated Balance Sheets, Cash Collateral Received | 0 | |
Net Assets Exposed | 30,852 | |
Counterparty A | ||
Offsetting Assets [Line Items] | ||
Gross Amounts of Recognized Assets | 15,038 | |
Gross Amounts Offset on the Consolidated Balance Sheets | 0 | |
Net Amounts of Assets Presented on the Consolidated Balance Sheets | 15,038 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets, Financial Instruments | (6,531) | |
Gross Amounts Not Offset in the Consolidated Balance Sheets, Cash Collateral Received | 0 | |
Net Assets Exposed | 8,507 | |
Counterparty B | ||
Offsetting Assets [Line Items] | ||
Gross Amounts of Recognized Assets | 14,264 | |
Gross Amounts Offset on the Consolidated Balance Sheets | 0 | |
Net Amounts of Assets Presented on the Consolidated Balance Sheets | 14,264 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets, Financial Instruments | (9,293) | |
Gross Amounts Not Offset in the Consolidated Balance Sheets, Cash Collateral Received | 0 | |
Net Assets Exposed | 4,971 | |
Counterparty C | ||
Offsetting Assets [Line Items] | ||
Gross Amounts of Recognized Assets | 3,410 | |
Gross Amounts Offset on the Consolidated Balance Sheets | 0 | |
Net Amounts of Assets Presented on the Consolidated Balance Sheets | 3,410 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets, Financial Instruments | (2,533) | |
Gross Amounts Not Offset in the Consolidated Balance Sheets, Cash Collateral Received | 0 | |
Net Assets Exposed | 877 | |
Counterparty D | ||
Offsetting Assets [Line Items] | ||
Gross Amounts of Recognized Assets | 28,380 | |
Gross Amounts Offset on the Consolidated Balance Sheets | 0 | |
Net Amounts of Assets Presented on the Consolidated Balance Sheets | 28,380 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets, Financial Instruments | (14,466) | |
Gross Amounts Not Offset in the Consolidated Balance Sheets, Cash Collateral Received | 0 | |
Net Assets Exposed | 13,914 | |
Counterparty E | ||
Offsetting Assets [Line Items] | ||
Gross Amounts of Recognized Assets | 3,732 | |
Gross Amounts Offset on the Consolidated Balance Sheets | 0 | |
Net Amounts of Assets Presented on the Consolidated Balance Sheets | 3,732 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets, Financial Instruments | (1,149) | |
Gross Amounts Not Offset in the Consolidated Balance Sheets, Cash Collateral Received | 0 | |
Net Assets Exposed | $ 2,583 |
Derivative Instruments - Offs_2
Derivative Instruments - Offsetting Liabilities (Details) - USD ($) $ in Thousands | Jan. 31, 2023 | Jan. 31, 2022 |
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Liabilities | $ 33,972 | $ 13,039 |
Gross Amounts Offset on the Consolidated Balance Sheets | 0 | |
Net Amounts of Liabilities Presented on the Consolidated Balance Sheets | 33,972 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets, Financial Instruments | (33,972) | |
Gross Amounts Not Offset in the Consolidated Balance Sheets, Cash Collateral Pledged | 0 | |
Net Liabilities Exposed | 0 | |
Counterparty A | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Liabilities | 6,531 | |
Gross Amounts Offset on the Consolidated Balance Sheets | 0 | |
Net Amounts of Liabilities Presented on the Consolidated Balance Sheets | 6,531 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets, Financial Instruments | (6,531) | |
Gross Amounts Not Offset in the Consolidated Balance Sheets, Cash Collateral Pledged | 0 | |
Net Liabilities Exposed | 0 | |
Counterparty B | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Liabilities | 9,293 | |
Gross Amounts Offset on the Consolidated Balance Sheets | 0 | |
Net Amounts of Liabilities Presented on the Consolidated Balance Sheets | 9,293 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets, Financial Instruments | (9,293) | |
Gross Amounts Not Offset in the Consolidated Balance Sheets, Cash Collateral Pledged | 0 | |
Net Liabilities Exposed | 0 | |
Counterparty C | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Liabilities | 2,533 | |
Gross Amounts Offset on the Consolidated Balance Sheets | 0 | |
Net Amounts of Liabilities Presented on the Consolidated Balance Sheets | 2,533 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets, Financial Instruments | (2,533) | |
Gross Amounts Not Offset in the Consolidated Balance Sheets, Cash Collateral Pledged | 0 | |
Net Liabilities Exposed | 0 | |
Counterparty D | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Liabilities | 14,466 | |
Gross Amounts Offset on the Consolidated Balance Sheets | 0 | |
Net Amounts of Liabilities Presented on the Consolidated Balance Sheets | 14,466 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets, Financial Instruments | (14,466) | |
Gross Amounts Not Offset in the Consolidated Balance Sheets, Cash Collateral Pledged | 0 | |
Net Liabilities Exposed | 0 | |
Counterparty E | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Liabilities | 1,149 | |
Gross Amounts Offset on the Consolidated Balance Sheets | 0 | |
Net Amounts of Liabilities Presented on the Consolidated Balance Sheets | 1,149 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets, Financial Instruments | (1,149) | |
Gross Amounts Not Offset in the Consolidated Balance Sheets, Cash Collateral Pledged | 0 | |
Net Liabilities Exposed | $ 0 |
Debt - Outstanding Debt (Detail
Debt - Outstanding Debt (Details) - USD ($) $ in Thousands | Jan. 31, 2023 | Jan. 31, 2022 |
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 3,000,000 | $ 1,843,567 |
Less: unamortized debt discount and issuance costs | (24,066) | (3,770) |
Total principal amount | 2,975,934 | 1,839,797 |
Less: debt, current | 0 | (1,222,443) |
Debt, noncurrent | 2,975,934 | 617,354 |
2027 Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 1,000,000 | 0 |
2029 Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 750,000 | 0 |
2032 Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 1,250,000 | 0 |
2022 Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 0 | 1,149,817 |
Term Loan | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 0 | $ 693,750 |
Debt - Schedule of Repayments A
Debt - Schedule of Repayments And Maturities Of Long-Term Debt (Details) - USD ($) $ in Thousands | Jan. 31, 2023 | Jan. 31, 2022 |
Debt Disclosure [Abstract] | ||
2024 | $ 0 | |
2025 | 0 | |
2026 | 0 | |
2027 | 0 | |
2028 | 1,000,000 | |
Thereafter | 2,000,000 | |
Total principal amount | $ 3,000,000 | $ 1,843,567 |
Debt - Narrative (Details)
Debt - Narrative (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Apr. 30, 2022 USD ($) | Jan. 31, 2021 shares | Jan. 31, 2023 USD ($) trading_day $ / shares shares | Jan. 31, 2021 USD ($) shares | Jan. 31, 2022 USD ($) | Dec. 31, 2020 USD ($) | Sep. 30, 2017 USD ($) | Jun. 30, 2013 USD ($) | |
Debt Instrument [Line Items] | ||||||||
Debt discount and issuance costs | $ 24,066 | $ 3,770 | ||||||
Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 3,000,000 | |||||||
Debt discount and issuance costs | 27,000 | |||||||
Estimated fair value | $ 2,800,000 | |||||||
2027 Notes | Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 1,000,000 | |||||||
Contractual interest rate (percent) | 3.50% | |||||||
Effective interest rate (percent) | 3.67% | |||||||
2029 Notes | Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 750,000 | |||||||
Contractual interest rate (percent) | 3.70% | |||||||
Effective interest rate (percent) | 3.82% | |||||||
2032 Notes | Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 1,250,000 | |||||||
Contractual interest rate (percent) | 3.80% | |||||||
Effective interest rate (percent) | 3.90% | |||||||
Two Thousand Twenty Two Credit Agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, maximum leverage ratio | 3.50 | |||||||
Debt instrument, maximum leverage ratio step up | 4.50 | |||||||
Two Thousand Twenty Two Credit Agreement | Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 1,000,000 | |||||||
Long-term line of credit | $ 0 | |||||||
Term Loan | Term Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 750,000 | |||||||
Payments of principal balance | 694,000 | |||||||
Two Thousand Twenty Credit Agreement | Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 750,000 | |||||||
Long-term line of credit | $ 0 | |||||||
2022 Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Payments on convertible senior notes | $ 1,150,000 | |||||||
Shares covered by each purchased option/warrant (in shares) | shares | 7,800,000 | |||||||
Number of trading days related to warrants (in days) | trading_day | 60 | |||||||
Exercise price of warrants (in dollars per share) | $ / shares | $ 213.96 | |||||||
Class of warrants expired (in shares) | shares | 2,600,000 | |||||||
Class of warrant outstanding (in shares) | shares | 5,200,000 | |||||||
2022 Notes | Convertible Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 1,150,000 | |||||||
Contractual interest rate (percent) | 0.25% | |||||||
2022 Notes | Convertible Debt | Class A | ||||||||
Debt Instrument [Line Items] | ||||||||
Settlement of convertible senior notes (in shares) | shares | 600,000 | |||||||
Indexed shares (in shares) | shares | 7,800,000 | |||||||
Initial conversion price (in dollars per share) | $ / shares | $ 147.10 | |||||||
Purchase of treasury stock from the exercise of convertible senior notes hedges (in shares) | shares | 600,000 | 1,700,000 | ||||||
2020 Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 250,000 | |||||||
Shares covered by each purchased option/warrant (in shares) | shares | 3,100,000 | |||||||
Number of trading days related to warrants (in days) | trading_day | 60 | |||||||
Exercise price of warrants (in dollars per share) | $ / shares | $ 107.96 | |||||||
2020 Notes | Class A | ||||||||
Debt Instrument [Line Items] | ||||||||
Class of warrant outstanding (in shares) | shares | 0 | 0 | ||||||
Distribution of shares to warrant holders (in shares) | shares | 1,600,000 | |||||||
2020 Notes | Convertible Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Contractual interest rate (percent) | 1.50% | |||||||
Payments on convertible senior notes | $ 250,000 | |||||||
2020 Notes | Convertible Debt | Class A | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt conversion, converted instrument, shares issued (in shares) | shares | 1,700,000 | |||||||
Indexed shares (in shares) | shares | 3,100,000 | |||||||
Initial conversion price (in dollars per share) | $ / shares | $ 81.74 | |||||||
Purchase of treasury stock from the exercise of convertible senior notes hedges (in shares) | shares | 600,000 | 1,700,000 | ||||||
Base Rate | Minimum | Two Thousand Twenty Two Credit Agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate (percent) | 0% | |||||||
Base Rate | Maximum | Two Thousand Twenty Two Credit Agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate (percent) | 0.50% | |||||||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Two Thousand Twenty Two Credit Agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate (percent) | 0.10% | |||||||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Minimum | Two Thousand Twenty Two Credit Agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate (percent) | 0.75% | |||||||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Maximum | Two Thousand Twenty Two Credit Agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate (percent) | 1.50% |
Debt - Schedule of Interest Exp
Debt - Schedule of Interest Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Debt Disclosure [Abstract] | |||
Contractual interest expense | $ 95,265 | $ 12,525 | $ 15,012 |
Interest cost related to amortization and write-off of debt discount and issuance costs | 6,955 | 3,988 | 53,693 |
Total interest expense | $ 102,220 | $ 16,513 | $ 68,705 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Apr. 30, 2021 | Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2023 | |
Lessee, Lease, Description [Line Items] | ||||
Operating lease right-of-use assets | $ 247,808 | $ 249,278 | ||
Operating lease liabilities | 263,000 | 273,142 | ||
Operating lease, lease not yet commenced, payment | $ 66,000 | |||
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease, lease not yet commenced, term (years) | 5 years | |||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease, lease not yet commenced, term (years) | 10 years | |||
Pleasanton, California | Affiliated Entity | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease right-of-use assets | $ 134,000 | |||
Operating lease liabilities | 146,000 | |||
Purchase price from asset acquisition | $ 173,000 | |||
Expenses from transactions with related party | $ 2,000 | 2,000 | ||
Operating lease, expense | $ 2,000 | $ 16,000 |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Leases [Abstract] | |||
Operating lease cost | $ 99,084 | $ 93,045 | $ 94,183 |
Short-term lease cost | 3,876 | 6,638 | 14,544 |
Variable lease cost | 44,841 | 25,743 | 17,708 |
Total operating lease cost | $ 147,801 | $ 125,426 | $ 126,435 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Leases [Abstract] | |||
Cash paid for operating lease liabilities | $ 93,868 | $ 91,402 | $ 87,450 |
Operating lease right-of-use assets obtained in exchange for new operating lease liabilities | $ 95,702 | $ 54,846 | $ 205,103 |
Weighted average remaining lease term (in years) | 5 years | 5 years | |
Weighted average discount rate (percentage) | 2.79% | 2.35% |
Leases - Maturities of Operatin
Leases - Maturities of Operating and Finance Lease Liabilities (Details) - USD ($) $ in Thousands | Jan. 31, 2023 | Jan. 31, 2022 |
Operating Leases | ||
2024 | $ 97,387 | |
2025 | 78,696 | |
2026 | 49,103 | |
2027 | 28,333 | |
2028 | 19,808 | |
Thereafter | 27,494 | |
Total lease payments | 300,821 | |
Less imputed interest | (27,679) | |
Total operating lease liabilities | $ 273,142 | $ 263,000 |
Commitments and Contingencies_2
Commitments and Contingencies (Detail) $ in Thousands | Jan. 31, 2023 USD ($) |
Third-Party Hosted Infrastructure Platform Obligations | |
Long-term Purchase Commitment [Line Items] | |
2024 | $ 40,000 |
2025 | 72,235 |
2026 | 165,391 |
2027 | 120,000 |
2028 | 150,000 |
Thereafter | 0 |
Total | 547,626 |
Other Purchase Obligations | |
Long-term Purchase Commitment [Line Items] | |
2024 | 115,386 |
2025 | 71,281 |
2026 | 65,895 |
2027 | 39,427 |
2028 | 44,889 |
Thereafter | 35,395 |
Total | $ 372,273 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Detail) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2022 $ / shares shares | Jan. 31, 2023 USD ($) shares | Jan. 31, 2023 USD ($) vote $ / shares shares | Jan. 31, 2022 USD ($) $ / shares shares | Jan. 31, 2021 USD ($) $ / shares shares | Nov. 30, 2022 USD ($) | Jun. 22, 2022 shares | Mar. 31, 2022 shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock repurchase program authorized amount | $ | $ 500 | |||||||
Term of share repurchase program (in months) | 18 months | |||||||
Authorized remaining amount to be purchased | $ | $ 425 | $ 425 | ||||||
Fair value of options vested in period | $ | 1 | $ 8 | $ 23 | |||||
Total intrinsic value of the options exercised | $ | $ 41 | $ 209 | $ 396 | |||||
Weighted-average remaining contractual life of exercisable options (in years) | 5 years | |||||||
Weighted-average remaining contractual life of vested and expected to vest, options (in years) | 5 years | |||||||
Weighted-average remaining contractual life of outstanding options (in years) | 5 years | |||||||
Number of shares purchased by employees (in shares) | 1,000,000 | |||||||
Common stock: | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Treasury stock repurchased (in shares) | 450,000 | 0 | 0 | |||||
Common stock repurchases under share repurchase program | $ | $ 75 | |||||||
Average price per share (in dollars per share) | $ / shares | $ 165.75 | |||||||
Two Thousand Twenty Two Equity Incentive Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Reserved for future issuance amount (in shares) | 30,000,000 | |||||||
2012 Equity Incentive Plan (EIP) | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Common stock available for future grants (shares) | 28,000,000 | 28,000,000 | ||||||
Employee Stock Purchase Plan (ESPP) | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Common stock available for future grants (shares) | 5,000,000 | 5,000,000 | ||||||
Number of additional shares reserved under plan (in shares) | 2,000,000 | |||||||
Class A | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Common stock outstanding, net of treasury stock (in shares) | 203,000,000 | 203,000,000 | ||||||
Common stock outstanding (in shares) | 204,000,000 | 204,000,000 | 196,000,000 | |||||
Common stock (votes per share) | vote | 1 | |||||||
Class B | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Common stock outstanding (in shares) | 55,000,000 | 55,000,000 | 55,000,000 | |||||
Common stock (votes per share) | vote | 10 | |||||||
Percent of shares of common stock less than 9% of the outstanding shares | 9% | |||||||
Duration of time after death of Co-Founders until shares are converted (in months) | 9 months | |||||||
ESPP | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Percentage of fair market value of stock at which employees are granted shares | 85% | |||||||
Expected term (in years) | 6 months | 6 months | 6 months | |||||
Weighted average grant date fair value (in dollars per share) | $ / shares | $ 132.95 | |||||||
Cash proceeds | $ | $ 149 | |||||||
Restricted Stock Units (RSU) | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period (in years) | 4 years | |||||||
Weighted average grant date fair value (in dollars per share) | $ / shares | $ 200.98 | $ 259.61 | $ 152.70 | |||||
Total grant-date fair value of units vested | $ | $ 977 | $ 1,600 | $ 1,100 | |||||
Accelerated share-based compensation expense | $ | $ 28 | |||||||
Unrecognized compensation cost | $ | 2,100 | $ 2,100 | ||||||
Weighted-average period to be recognized (in months and years) | 3 years | |||||||
Number of shares granted (in shares) | 9,184,000 | |||||||
Market-Based Restricted Stock Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Weighted average grant date fair value (in dollars per share) | $ / shares | $ 124.80 | |||||||
Unrecognized compensation cost | $ | $ 35 | $ 35 | ||||||
Weighted-average period to be recognized (in months and years) | 5 years | |||||||
Expected volatility | 40% | |||||||
Risk-free interest rate | 4% | |||||||
Expected term (in years) | 6 years | |||||||
Requisite service period (in years) | 5 years | |||||||
Performance-based Restricted Stock Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of shares granted (in shares) | 0 | |||||||
Stock Options | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period (in years) | 5 years | |||||||
Maximum exercise period (in years) | 10 years | |||||||
Co-CEO | Market-Based Restricted Stock Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of shares granted (in shares) | 300,000 | |||||||
Vesting March 15 2022 | Non-Executive Employees | Performance-based Restricted Stock Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of shares granted (in shares) | 400,000 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Information Related to Restricted Stock Units Activity (Detail) - Restricted Stock Units (RSU) - $ / shares | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Restricted Stock Units | |||
Beginning balance, Number of Shares | 11,808,000 | ||
Restricted stock units granted, Number of Shares | 9,184,000 | ||
Restricted stock units vested, Number of Shares | (5,466,000) | ||
Restricted stock units forfeited, Number of Shares | (1,427,000) | ||
Ending balance, Number of Shares | 14,099,000 | 11,808,000 | |
Weighted-Average Grant Date Fair Value | |||
Beginning Balance (in usd per share) | $ 209.12 | ||
Restricted stock units granted (in usd per share) | 200.98 | $ 259.61 | $ 152.70 |
Restricted stock units vested (in usd per share) | 203.51 | ||
Restricted stock units forfeited (in usd per share) | 205.26 | ||
Ending Balance (in usd per share) | $ 206.38 | $ 209.12 |
Stockholders' Equity - Stock Op
Stockholders' Equity - Stock Options (Detail) $ / shares in Units, $ in Millions | 12 Months Ended |
Jan. 31, 2023 USD ($) $ / shares shares | |
Outstanding Stock Options | |
Beginning balance (in shares) | shares | 387,000 |
Stock options exercised (in shares) | shares | (228,000) |
Stock options canceled (in shares) | shares | (44,000) |
Ending balance (in shares) | shares | 115,000 |
Vested and expected to vest ( in shares) | shares | 115,000 |
Exercisable (in shares) | shares | 115,000 |
Weighted-Average Exercise Price | |
Beginning balance (in usd per share) | $ / shares | $ 20.09 |
Stock options exercised (in usd per share) | $ / shares | 15.66 |
Stock options canceled (in usd per share) | $ / shares | 16.20 |
Ending balance (in usd per share) | $ / shares | 30.36 |
Vested and expected to vest, Weighted-Average Exercise Price (in usd per share) | $ / shares | 30.36 |
Exercisable, Weighted-Average Exercise Price (in usd per share) | $ / shares | $ 30.34 |
Beginning balance, Aggregate Intrinsic Value | $ | $ 90 |
Ending balance, Aggregate Intrinsic Value | $ | 17 |
Vested and expected to vest, Aggregate Intrinsic Value | $ | 17 |
Exercisable, Aggregate Intrinsic Value | $ | $ 17 |
Stockholders' Equity - Assumpti
Stockholders' Equity - Assumptions Used for Periods Presented (Detail) - ESPP - $ / shares | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility, Minimum | 46.20% | 30.40% | 36.90% |
Expected volatility, Maximum | 48.50% | 41.50% | 51% |
Expected term (in years) | 6 months | 6 months | 6 months |
Risk-free interest rate, Minimum (percentage) | 1.63% | 0.04% | 0.10% |
Risk-free interest rate, Maximum (percentage) | 4.65% | 0.10% | 1.62% |
Dividend yield (percentage) | 0% | 0% | 0% |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grant date fair value per share (in dollars per share) | $ 156.56 | $ 225.70 | $ 146.14 |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grant date fair value per share (in dollars per share) | $ 169.48 | $ 260.86 | $ 191.85 |
Unearned Revenue and Performa_2
Unearned Revenue and Performance Obligations - Narrative (Details) - USD ($) $ in Billions | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |||
Subscription revenue recognized that was included in total unearned revenue balance at beginning of period | $ 3 | $ 2.5 | $ 2.2 |
Unearned Revenue and Performa_3
Unearned Revenue and Performance Obligations - Transaction Price Allocated to the Remaining Performance Obligations (Details) - Subscription services $ in Billions | Jan. 31, 2023 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue is expected to be recognized from remaining performance obligations for subscription contracts | $ 16.4 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-02-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue is expected to be recognized from remaining performance obligations for subscription contracts | $ 9.7 |
Recognition period (in months) | 24 months |
Other Income (Expense), Net (De
Other Income (Expense), Net (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Other Income and Expenses [Abstract] | |||
Interest income | $ 97,709 | $ 5,575 | $ 18,788 |
Interest expense | (102,353) | (16,602) | (68,806) |
Other | (33,106) | 143,659 | 23,483 |
Total other income (expense), net | $ (37,750) | $ 132,632 | $ (26,535) |
Income Taxes - Components of Lo
Income Taxes - Components of Loss before Provision for (Benefit from) Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (59,376) | $ 309,061 | $ (140,352) |
Foreign | (200,574) | (292,879) | (134,782) |
Income (loss) before provision for (benefit from) income taxes | $ (259,950) | $ 16,182 | $ (275,134) |
Income Taxes - Summary of Provi
Income Taxes - Summary of Provision for (Benefit from) for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Current: | |||
Federal | $ 209 | $ 0 | $ 0 |
State | 14,316 | 763 | 1,524 |
Foreign | 96,722 | 7,300 | 9,248 |
Total | 111,247 | 8,063 | 10,772 |
Deferred: | |||
Federal | 623 | (1,953) | (81) |
State | 667 | (721) | (177) |
Foreign | (5,738) | (18,580) | (3,217) |
Total | (4,448) | (21,254) | (3,475) |
Provision for (benefit from) income taxes | $ 106,799 | $ (13,191) | $ 7,297 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Taxes Computed at Federal Statutory Income Tax Rate and Provision for (Benefit from) Income Taxes (Detail) | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory rate | 21% | 21% | 21% |
Effect of: | |||
Foreign income at other than U.S. rates | (44.70%) | 321% | (13.10%) |
Intercompany transactions | 3.50% | (158.20%) | 1% |
Research tax credits | 26.50% | (447.70%) | 26.60% |
State taxes, net of federal benefit | (4.70%) | (0.70%) | (0.50%) |
Changes in valuation allowance | (14.90%) | 558.50% | (56.30%) |
Share-based compensation | (26.50%) | (365.40%) | 19% |
Permanent difference | (0.90%) | 4.60% | (0.30%) |
Nontaxable gain on investment | 0% | (15.70%) | 0% |
Other | (0.40%) | 1% | (0.10%) |
Total | (41.10%) | (81.60%) | (2.70%) |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Jan. 31, 2023 | Jan. 31, 2022 |
Deferred tax assets: | ||
Unearned revenue | $ 10,590 | $ 16,877 |
Other reserves and accruals | 60,419 | 28,629 |
Tax attributes carryforward | 1,574,849 | 1,790,396 |
Capitalized research and development expense | 255,384 | 0 |
Property and equipment | 29,833 | 23,977 |
Share-based compensation | 75,373 | 71,191 |
Intangibles | 503,256 | 422,985 |
Operating lease liabilities | 63,278 | 60,714 |
Other | 27,364 | 39,373 |
Total deferred tax assets | 2,600,346 | 2,454,142 |
Valuation allowance | (2,358,496) | (2,242,901) |
Deferred tax assets, net of valuation allowance | 241,850 | 211,241 |
Deferred tax liabilities: | ||
Deferred commissions | (126,618) | (102,682) |
Operating lease right-of-use assets | (57,419) | (57,001) |
Other | (46,695) | (43,990) |
Total deferred tax liabilities | (230,732) | (203,673) |
Net deferred tax assets | $ 11,118 | $ 7,568 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Detail) - USD ($) | 12 Months Ended | |||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Tax Credit Carryforward [Line Items] | ||||
Valuation allowance | $ 2,358,496,000 | $ 2,242,901,000 | ||
Increase of valuation allowance on net deferred tax assets | 116,000,000 | 159,000,000 | ||
Income tax examination, penalties and interest expense | 0 | 0 | $ 0 | |
Unrecognized tax benefits | 195,794,000 | $ 173,929,000 | $ 159,862,000 | $ 143,621,000 |
Unrecognized tax benefits that would impact effective tax rate | 7,000,000 | |||
Federal | ||||
Tax Credit Carryforward [Line Items] | ||||
Net operating loss carryforwards | 2,800,000,000 | |||
Federal | Research Tax Credit Carryforward | ||||
Tax Credit Carryforward [Line Items] | ||||
Tax credit carryforwards | 310,000,000 | |||
State | ||||
Tax Credit Carryforward [Line Items] | ||||
Net operating loss carryforwards | 2,800,000,000 | |||
State | Research Tax Credit Carryforward | ||||
Tax Credit Carryforward [Line Items] | ||||
Tax credit carryforwards | 294,000,000 | |||
Foreign | ||||
Tax Credit Carryforward [Line Items] | ||||
Net operating loss carryforwards | $ 3,000,000,000 |
Income Taxes - Summary of Recon
Income Taxes - Summary of Reconciliation of Gross Unrecognized Tax Benefit (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits at the beginning of the period | $ 173,929 | $ 159,862 | $ 143,621 |
Additions for tax positions taken in prior years | 742 | 572 | 4,640 |
Reductions for tax positions taken in prior years | 0 | (1,030) | (2,347) |
Additions for tax positions related to the current year | 21,207 | 14,918 | 15,158 |
Reductions related to a lapse of applicable statute of limitations | (84) | 0 | (807) |
Reductions related to settlements | 0 | (393) | (403) |
Unrecognized tax benefits at the end of the period | $ 195,794 | $ 173,929 | $ 159,862 |
Net Income (Loss) Per Share - S
Net Income (Loss) Per Share - Summary of Basic and Diluted Net Income (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Numerator: | |||
Net income (loss) | $ (366,749) | $ 29,373 | $ (282,431) |
Denominator: | |||
Weighted-average shares outstanding, basic (in shares) | 254,819 | 247,249 | 237,019 |
Weighted-average common shares outstanding, diluted (in shares) | 254,819 | 254,032 | 237,019 |
Net income (loss) per share, basic (in dollars per share) | $ (1.44) | $ 0.12 | $ (1.19) |
Net income (loss) per share, diluted (in dollars per share) | $ (1.44) | $ 0.12 | $ (1.19) |
Class A | |||
Numerator: | |||
Net income (loss) | $ (287,570) | $ 22,556 | $ (210,637) |
Reallocation of net income as a result of conversion of Class B to Class A common stock | 0 | 6,817 | 0 |
Reallocation of net income to Class B common stock | 0 | 0 | 0 |
Net income (loss) for diluted calculation | $ (287,570) | $ 29,373 | $ (210,637) |
Denominator: | |||
Weighted-average shares outstanding, basic (in shares) | 199,805 | 189,864 | 176,758 |
Conversion of Class B to Class A common stock (in shares) | 0 | 57,385 | 0 |
Dilutive effect of share-based awards (in shares) | 0 | 5,549 | 0 |
Dilutive effect of warrants related to the issuance of convertible senior notes (in shares) | 0 | 1,234 | 0 |
Weighted-average common shares outstanding, diluted (in shares) | 199,805 | 254,032 | 176,758 |
Net income (loss) per share, basic (in dollars per share) | $ (1.44) | $ 0.12 | $ (1.19) |
Net income (loss) per share, diluted (in dollars per share) | $ (1.44) | $ 0.12 | $ (1.19) |
Class B | |||
Numerator: | |||
Net income (loss) | $ (79,179) | $ 6,817 | $ (71,794) |
Reallocation of net income as a result of conversion of Class B to Class A common stock | 0 | 0 | 0 |
Reallocation of net income to Class B common stock | 0 | (182) | 0 |
Net income (loss) for diluted calculation | $ (79,179) | $ 6,635 | $ (71,794) |
Denominator: | |||
Weighted-average shares outstanding, basic (in shares) | 55,014 | 57,385 | 60,261 |
Conversion of Class B to Class A common stock (in shares) | 0 | 0 | 0 |
Dilutive effect of share-based awards (in shares) | 0 | 0 | 0 |
Dilutive effect of warrants related to the issuance of convertible senior notes (in shares) | 0 | 0 | 0 |
Weighted-average common shares outstanding, diluted (in shares) | 55,014 | 57,385 | 60,261 |
Net income (loss) per share, basic (in dollars per share) | $ (1.44) | $ 0.12 | $ (1.19) |
Net income (loss) per share, diluted (in dollars per share) | $ (1.44) | $ 0.12 | $ (1.19) |
Net Income (Loss) Per Share -_2
Net Income (Loss) Per Share - Summary of Diluted Net Income (Loss) Per Common Share (Details) - shares shares in Thousands | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total anti-dilutive securities (in shares) | 28,398 | 9,253 | 34,963 |
Shares related to outstanding share-based awards | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total anti-dilutive securities (in shares) | 15,454 | 1,436 | 15,366 |
Shares related to the convertible senior notes | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total anti-dilutive securities (in shares) | 5,182 | 7,817 | 9,205 |
Shares subject to warrants related to the issuance of convertible senior notes | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total anti-dilutive securities (in shares) | 7,762 | 0 | 10,392 |
Geographic Information - Summar
Geographic Information - Summary of Revenues by Geographic Area (Detail) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2023 USD ($) market | Jan. 31, 2022 USD ($) | Jan. 31, 2021 USD ($) | |
Disaggregation of Revenue [Line Items] | |||
Number of primary geographical markets | market | 2 | ||
Revenues | $ 6,215,818 | $ 5,138,798 | $ 4,317,996 |
United States | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 4,682,285 | 3,845,412 | 3,249,127 |
Other countries | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 1,533,533 | $ 1,293,386 | $ 1,068,869 |
Geographic Information - Long-L
Geographic Information - Long-Lived Assets (Details) - USD ($) $ in Thousands | Jan. 31, 2023 | Jan. 31, 2022 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | $ 1,450,532 | $ 1,370,883 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | 1,206,486 | 1,174,371 |
Ireland | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | 159,337 | 117,049 |
Other countries | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | $ 84,709 | $ 79,463 |
401(k) Plan (Detail)
401(k) Plan (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Retirement Benefits [Abstract] | |||
Contributions by employer | $ 57 | $ 46 | $ 42 |